TDK to Close Four Plants

Jan. 8, 2009
Will cut 8,000 jobs

Electronic component maker TDK Corp. said on Jan. 8 that it was cutting 8,000 jobs and closing four plants overseas to cope with the economic crisis.

The announcement came shortly after TDK forecast a net loss of 28 billion yen (US$301 million) for the financial year to March 2009 due to weak sales and the stronger yen.

"Since the beginning of the third quarter, the company's orders have fallen more dramatically than expected," TDK said.

TDK, which bought German electronic component maker Epcos last year, said it expected orders to remain weak in the last fiscal quarter and for the yen to stay strong, reducing its overseas earnings.

Previously TDK, whose products include electronic components and magnetic heads for hard-disk drivers, had been anticipating an annual net profit of 25 billion yen, down from 71.46 billion yen a year earlier. It cut its revenue forecast to 673 billion yen from 795 billion.

TDK president Takehiro Kamigame said the restructuring would cost 15 billion yen and boost annual operating profit by 62.9 billion yen.

Copyright Agence France-Presse, 2009

Popular Sponsored Recommendations

Process Mining For Dummies

Nov. 19, 2023
Here it is. Everything you need to know about process mining in a single book, written in the easy-to-understand, hard-to-forget style that ‘For Dummies’ manages so effortlessly...

You Cannot Stay Competitive by Bolting New Technologies to a Legacy ERP

Oct. 20, 2023
Read this white paper to understand the benefits of shifting to a next-generation ERP system as part of a DOP.

Legacy Phone Lines Are Draining Your Profits

Oct. 30, 2023
Copper wire phone line expenses that support emergency devices could be costing your company millions of dollars in wasteful overhead expenses. Rates have been skyrocketing while...

The Ultimate Ecommerce Excellence Checklist

Oct. 2, 2023
Scaling ecommerce operations is no easy task when your business is moving fast. Assess your current ecommerce maturity level and set optimization priorities with this practical...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!