Sanyo cuts 1,200 jobs; 800 in Japan; 400 in overseas

Sanyo Electric Co. forecast zero net profit for the current financial year and announced 1,200 job cuts, saying the overhaul was needed to survive the economic crisis.

Sanyo, which is being bought by its bigger rival Panasonic Corp., scrapped a previous forecast for a net profit of 35 billion yen (US$394 million), predicting that its bottom line would just break even.

Sanyo will cut 800 jobs in Japan and 400 overseas, including both regular and temporary positions, Sanyo vice president Koichi Maeda said. The group will reduce the number of semiconductor plants abroad from seven to four.