Panasonic Deemphasizing Consumer Electronics

Panasonic Corp., the struggling Japanese consumer electronics giant, announced it will spend 250 billion yen ($2.7 billion) over the next two years on a fresh round of restructuring.

But, said president Kazuhiro Tsuga in a news conference, the restructuring will result in diminishing the company’s consumer electronics business while expanding its automotive and housing development.

Like its Japanese counterparts, Sony and Sharp, Panasonic has seen its TV unit hurt by lower-cost Korean rivals. As a result, Panasonic – though Japan's biggest commercial employer – is set to report its second straight annual net loss and is under pressure to dump weak businesses and trim its payroll.