While giant Japanese technology companies find it hard to fight the global crisis, having to cut costs and fire employees in order to save their businesses, the Chinese companies are flourishing and even take talented employees from overseas rivals.
The conclusion belongs to the Chinese press, which reports that corporations such as Panasonic, Sharp, NEC Corp and Olympus announced new layoff plans, due to the declining economy.
About 50,000 employees will be fired by Sony, Panasonic and Sharp in the near future, according to China Daily. By the end of March 2013, Panasonic will fire 10,000 employees. Panasonic explained recently that its mobile, solar panel and lithium battery businesses brought this year losses of $10 billion.
Sharp, a Japanese IT giant that has been active on the market in the last 100 years, will also have to go through major restructuring to get back on track by 2014, according to Kyodo News. Just like Panasonic, Sharp will have to let go to 10,000 people of its current 57,170 headcount by March 2014. The company reported a loss of $4.7 billion in 2011.
Sony is in the same situation, as it had losses of $5.7 billion last year and it has to cut about 10,000 jobs.
The global crisis is one of the reasons for the losses of Japanese technology companies, analysts say. Another reason might be that Japanese companies are not leaders anymore on the technology market, China Daily writes.
For example, while many Chinese and Korean companies introduced 3D TVs last year, almost no Japanese companies had the latest technology on their shelves, according to the cited source.