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Pioneer to exit TV market in 2010
Well, the word is out and final for Pioneer. Pioneer announced an annual loss of 130 billion yen (approx. $1.44 billion) and unveiled restructuring plans. The company said it will cut 10,000 jobs, close 30 percent of its production units, and that it will close its TV operations by March 2010.
The company will withdraw from the TV business by March 2010 and cut 16 percent of its full-time workforce, plus 4,000 temporary positions, Tokyo-based Pioneer said today. The net loss in the year ending March 31 compares with the 78 billion yen deficit it estimated on Oct. 30. Sales will probably fall 28 percent to 560 billion yen, the company said.
Pioneer, poised for a fifth annual deficit, lost a combined 100.6 billion yen at its home electronics business, including plasma TV operations, since the year ended March 2004. The recession increases the challenge for President Susumu Kotani, who took charge in November, to restore profitability by relying on sales of car-navigation systems even as auto sales plunge.
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