The second glass maker in Japan, Nippon Sheet Glass, has to cut costs by Y20 billion ($262 million) a year and it will axe 3,500 jobs worldwide, the company said.
It did not specify where the layoffs would be, but it said it would shut down one of its production facilities in Great Britain.
Nippon Sheet Glass bought the British company Pilkington in 2006 and became heavily dependent on the European market, which currently generates about 40 percent of its sales.
The crisis that affects Europe has caused a strong fall in demand for the products of the Japanese company, mainly in the building and automotive glass categories.
“The group has experienced a reduction in many of its core markets, including its significant European building products and automotive markets,” the company said.
“The global market for solar energy glass has also worsened significantly during the third quarter… the group does not expect to see a recovery during the remainder of the current financial year.”
Net profit has dropped by 86 percent, to Y1.2 billion, in the nine months to December.