Panasonic is exiting the plasma television panel business by the end of the financial year March 2014, according to Reuters. It has been expected for a long time that Panasonic is exiting the business, but it is happening sooner than expected.
Panasonic President Kazuhiro Tsuga has been emphasizing on phasing out weaker operations at the company. The Panasonic TV division was a major reason why the company saw a $15 billion net loss for the last two financial years.
The TV business alone saw an operating loss of 88.5 billion yen ($913 million) in the past year. Panasonic has already closed their plasma panel factory in western Japan and they will see an impairment loss of over 40 billion yen on their last remaining TV panel building in operation.
Panasonic put aside 120 billion yen to cover the restructuring costs at the state of the current year. Panasonic is still considering various options for their plasma display panel business, but nothing is firm yet.
The employees at Panasonic’s panel operations will be deployed to other parts of the company. Last month, Panasonic sold their healthcare business to KKR & Co. for $1.67 billion.