Tokyo: Japan’s Hitachi Ltd. said Friday it expected a massive loss of nearly $8 billion in the current year due to the economic crisis and would shed up to 7,000 jobs.
The electronics and engineering group forecast a loss of ¥700 billion ($7.83 billion dollars) in the year ending 31 March. It previously expected a net profit of ¥15 billion.
It now predicts an operating profit of ¥40 billion yen, nearly one-tenth of what the company had forecast in October.
“Revenue for the 2009 financial year is expected to fall greatly due to the quick slowdown of demand for automobiles, semiconductors and industrial machinery,” Hitachi said in a statement.
To cope with the expected massive loss, Hitachi said it would cut up to 7,000 jobs globally in its struggling auto equipment and electronics divisions.
The company also said it will streamline fixed costs by some ¥200 billion in the year to March 2010, mainly in its digital media and auto equipment divisions.
For the three months to December, Hiatchi reported a net loss of ¥371 billion, compared with a net profit of ¥12.5 billion a year earlier.
Japan is in the midst of its first recession in seven years as the global slowdown saps demand overseas for cars, computers, cameras and other key exports.
Japanese companies have also been hit hard by a strong yen, which recently soared to a 13-year high against the dollar.