Sanyo to spin off domestic sales operations

Tokyo, Oct 21: Struggling electronics maker Sanyo Electric Co. plans to spin off its domestic sales operations by next April to cut costs, a Japanese newspaper reported on Saturday.

The reorganisation will help the Osaka-based consumer electronics maker downsize its administrative and accounting operations, as well as consolidate its sales offices, the Nihon Keizai Shimbun reported.

Sanyo will maintain the strategic planning functions of its sales department with the parent company but integrate other operations, such as dealings with mass market retailers, with three existing subsidiaries to form a new unit, the paper said.

The new unit is expected to reassess wages to reduce personnel costs, the paper added.

Sanyo said earlier this month it planned to cut the number of its group firms by around 30, or roughly 10 percent, and an unspecified number of jobs.

Sanyo had already cut 15 percent of its workforce as part of a sweeping restructuring that has included closing factories, halving its debt and streamlining unprofitable operations.

Despite the turnaround efforts, however, Sanyo in July forecast a net loss of 8 billion yen (.38 million) for April-September following a 205.7 billion yen loss for the year ended March 31, in a sign that more steps may be needed.

Reuters