Panasonic has decided to close its Business Communications arm over the next two years.
The Japanese giant announced the decision in an email to partners yesterday, citing the increase in cloud-based solutions as a key factor in the decline of its business communications arm.
The email from Carlos Osuna, Head of Business Communications Business Unit at Panasonic, went on to state that Panasonic felt the future of the business was “untenable and unpredictable”, adding that a “mismatch” between factory assets and market demands and R&D activities that “lagged behind” its competitors, meant the business is running at a “constant financial deficit.”
Losing Ground
According to sources close to UC Today, Panasonic Business Communications were “losing ground” to competitors in Asia and the US but said that EMEA was doing “relatively well”. Manufacturing is set to continue until 2022 and there will be a spares and support programme set up until 2029 with the message to partners that it’s “business as usual for now.”
All the employees in the Business Communications arm are at risk of losing their jobs with the consultation process beginning next week. The structure of the business will be revealed in April at the start of the financial year.
In the email, Osuna said,
“It is with great sorrow that we close our business, especially one that has decades of history and trust”
“In recent years Panasonic has worked hard to find a way to continue the business by making our organization and its relationships with partners as sustainable as possible. However, it has become apparent that this is not possible… given the current business environment based on the limited capability of factory resources.”
