Hundreds of Panasonic Malaysia Manufacturing Bhd workers may be out of a job after it is reported to be closing more of its operations here.
Citing a report from Malaysiakini, the Japanese manufacturing company is believed to be closing its factory after various issues faced including a lawsuit that resulted in the dismissal of its executive director and 15 managers.
The report added that 500 Malaysian employees and 95 foreign employees at Panasonic Appliances Refrigeration Devices Malaysia Sdn Bhd in Melaka are now threatened due to the possibility that it will be closed before the end of this year.
Not only that, Panasonic AVC Networks Johor Malaysia Sdn Bhd is also reported to be planning to stop operations by the end of 2023, but it is not known how many employees will be affected.
Panasonic announced the closure of two departments at the Shah Alam factory
Meanwhile in its latest filing to the Bursa, Panasonic announced the closure of two product departments at its Shah Alam 1 (SA1) factory.
The move was made in line with the rationalization and restructuring of the business which was completed on 31 March 2023.
Even so, the closure of the facility only involves two product manufacturing departments, no other plants or departments will be affected.
He further added that a large number of employees in the affected departments have been given the option of the Joint Separation Scheme (MSS), and most of them have voluntarily taken this opportunity.
However, it insisted that the shutdown was unrelated to lawsuits filed in 2016 and 2017, which it said had been successfully resolved.
Panasonic reported a sharp drop in fourth-quarter net profit
Earlier, Panasonic reported its net profit for the fourth quarter ending 31 March 2023 declined 53.42% to RM7.35 million from RM15.78 million a year earlier.
This follows lower revenue, higher operating and utility costs and a weaker profit share than its associates.
Additionally, quarterly revenue fell 6.34% to RM195.53 million from RM208.77 million in the quarter, due to lower sales as the company's rice cooker and kitchenware businesses were discontinued.
