Hitachi forecasts $7.7B loss; to cut 7,000 jobs

Japanese electronics maker Hitachi Ltd. predicted it would post a massive net loss this fiscal year and said it will slash about 7,000 jobs as part of a global restructuring plan.

Battered by plunging demand, the company forecast Friday a net loss of 700 billion yen ($7.7 billion) for the fiscal year through March 31, a stark reversal from the 15 billion yen profit it forecast in October.

Hitachi, which makes everything from home appliances and TVs to IT systems and medical equipment, also cut its operating profit projection - by 90 percent to 40 billion yen.

The company blamed sharply falling sales in most of its main businesses including electronic devices, power and industrial systems, and consumer products.

"Economic stagnation is expected to persist for the foreseeable future, making revenue expansion unlikely," Hitachi said in a statement.

It added that it is "determined to implement far-reaching structural reforms" to survive the economic downturn.

The company said it aims to cut 200 billion yen in costs by March 2010 by scrapping unprofitable businesses and products, reviewing investments, closing plants and cutting workers.

It plans to cut about 4,000 workers worldwide from its automotive systems business and another 3,000 from its consumer business by the end of the next fiscal year.