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Sanyo Q3 Results Lead to Substantial Layoffs

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January 31, 2006 – Sanyo, just coming off the heels of their announced restructuring, has released third quarter results, which for their fiscal year includes October-December. Perhaps not surprisingly, Sanyo is reporting a loss.

In their quarterly report, Sanyo informs that consolidated net sales were down 1.5% since last year at a low of ¥611.5 billion. Broken down by domestic (Japan) and international sales, Japanese sales decreased by ¥283.7 billion yen or 8.2%, while overseas net sales increased 5.2% to ¥327.8 billion.

Sanyo also announced today a layoff of 10,500 people by "January 31, 2006," which is the same day they made the lay =off announcement (today). Of those let go, 4,850 are Japanese employees and the remaining 5,650 are employed in other countries.

Additionally, Sanyo has announced that the sales of their Fukiage and Ashikaga plants have been completed, and that they are also looking to sell off 60 of their sales offices located in Japan. Sanyo is also reducing its Human Resource departments worldwide by outsourcing its HR development, payroll accounting, and company HR practices to IBM Japan.

Sanyo refers to the restructuring changes they plan to make as the "SANYO EVOLUTION PROJECT."