OSAKA -- Matsushita Electric Industrial Co. said Friday that more than 10,000 workers, or over 10 percent of its group workforce, have applied to take part in an early retirement plan.
The move marks one of the largest workforce reductions at a Japanese electronics maker.
Matsushita is expected to rack up consolidated extraordinary losses of some 265 billion yen associated with the early retirement plan when it closes its books for fiscal 2001.
Since more workers are expected to apply before the Jan. 31 deadline, Matsushita may incur tens of billions of yen in additional expenses related to the special retirement benefits, industry sources said.
Of the combined 100,000 employees at the Matsushita group companies, about 80,000 belong to the five core firms of the group led by Matsushita Electric Industrial and Matsushita Communication Industrial Co.
The number of workers who have applied for the special retirement allowances from the five firms was well above the 6,400 that the group expected, it added.
Matsushita Electric has promised to pay those who apply for early retirement the equivalent of 2 1/2 years salary on top of usual retirement allowances.