Sanyo speeds up restructuring

Japanese electronics maker Sanyo said it will speed up a massive restructuring, including quicker job cuts, to turn its struggling business around.

Sanyo, which projects a record loss for the year, said it plans to raise $2.5 billion by selling new shares to existing shareholders and accelerating job cuts so 10,000 workers will have been trimmed by the end of January. Earlier, Sanyo said it planned to cut 14,000 employees, 15 percent of its work force, over a three-year period.

news.com :

Japan's Sanyo Electric plans to raise up to 300 billion yen ($2.52 billion) by issuing new shares to Goldman Sachs and other firms, while downsizing its ailing chip and home appliance divisions. Following a management reshuffle in June, Sanyo embarked on a three-year restructuring plan in which it aims to cut 14,000 employees, close or sell the equivalent of 20 percent of its factory floor space in Japan and halve its 1.2 trillion yen ($10 billion) debt.

Long criticized by analysts as overstretched and wasting money on unprofitable businesses, Sanyo said it would transform itself from an electronics conglomerate into a company that focuses on products related to the environment and energy. Among Sanyo's pockets of strength are lithium-ion rechargeable batteries and solar cells.

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