Mitsubishi Cuts Jobs at Semiconductor Group
Mitsubishi Electric Corp. (Japan) slashed its net income projection for the current fiscal year from $63.0 million to $17.0 million. The company will cut jobs, capital expenditures and assembly lines from its semiconductor group and will dissolve one of its US subsidiaries, executives stated September 14, 2001.
Additionally, Mitsubishi's semiconductor group will shed 1,000 workers by March 2002, shelve several obsolete lines this year and halve to 10 its assembly and test companies over the next three years.
Mitsubishi Electric Corporate Vice President Yukihiro Sato blamed "continued stagnation" in the global IT market for the precipitous slide in the company's projections. All five of Japan's other largest semiconductor makers have cut thousands of jobs in recent months, but Sato said Mitsubishi had already reduced its work force years ago. "We have already restructured in October 1998 and March 1999 in which we announced we would cut 15,000 jobs over three years. We are sticking with that," Sato said. "Given the present situation, we may be considering more cuts, although nothing in the region of another 15,000."