Panasonic has announced that it will cut its workforce by up to 40,000, a little over 10 per cent, as part of plans to restructure the company.

Panasonic is believed to employ a total of 380,000 people – 220,000 in Panasonic itself, 60,000 in Panasonic Electric Works and 100,000 at subsidiary company Sanyo – and says it will offer voluntary early retirement to staff over the next few years.

The restructuring plans also include strategies to boost the profitability of its TV production by transferring some plasma manufacturing to China and buying in more LCD panels from other manufacturers.

Further strategies to improve the profitability of the TV sector include focusing on those panel sizes where the company thinks its products are most competitive, and the introduction of new models with more distinctive features.

The announcement comes after the company has already shed 41,000 staff following the failure of the ‘IT bubble’ and difficulties arising from the global banking crisis. The majority of the latest losses are expected to be abroad with overseas production, white goods, overlapping interests with Sanyo and admin divisions bearing the brunt of the cuts.