Japanese electronic component maker TDK Corporation said today that it was cutting 8,000 jobs and closing four plants overseas to cope with the economic crisis.
The move comes amid a wave of global lay-offs by companies struggling to cope with slumping consumer spending in recession-hit major economies.
The news came shortly after TDK forecast a net loss of 28 billion yen ($301m) for the financial year to March 2009 due to weak sales and the stronger yen.
'Since the beginning of the third quarter, the company's orders have fallen more dramatically than expected,' TDK said in a statement.
TDK, which bought German electronic component maker Epcos last year, said it expected orders to remain weak in the last fiscal quarter and for the yen to stay strong, reducing its overseas earnings.
Previously TDK - whose products include electronic components and magnetic heads for hard-disk drivers - had been anticipating an annual net profit of 25 billion yen, down from 71.46 billion yen a year earlier. It cut its revenue forecast to 673 billion yen from 795 billion.
TDK president Takehiro Kamigame said the restructuring would cost 15 billion yen and boost annual operating profit by 62.9 billion yen.