Tokyo: Japan’s Panasonic Corp. said Friday it will slash investment in flat screen televisions and withdraw from unprofitable businesses to cope with the economic downturn.

The company, which has enjoyed brisk sales of plasma televisions, mobile telephones and digital cameras in recent years, said it would undertake “drastic structural reforms” to streamline its operations.

It plans to close down overseas operations that are losing money, although details of the overhaul have not yet been decided.

“The current situation is not just a simple economic slump. Global demand is shrinking and shifting to the emerging markets,” Panasonic president Fumio Ohtsubo told a media conference.

“We cannot expect an easy recovery. We must focus our efforts on structural reform, strengthening our company, and prepare for future growth,” he said.

Panasonic said it would reduce investment in two plasma panel plants to 445 billion yen (4.9 billion dollars), from 580 billion yen previously expected.