Panasonic mulls taking ax to payroll

Kyodo

Panasonic Corp. is considering slashing payroll expenses for fiscal 2013 by tens of billions of yen to help turn around its slumping business, sources said Thursday.

The electronics maker plans to cut a range of workforce-related expenditures, including travel allowances, overtime pay and salaries for managerial staff. The company may also slash bonus payments for regular employees, but will keep the basic monthly wage unchanged, the sources said.

Panasonic has already cut wages, including executive salaries, as it is expected to post a group net loss of ¥765 billion for the current fiscal year ending March 31 on flagging sales of its digital appliances.

The firm has also decided to maintain seniority-based regular wage increases for fiscal 2013.