Almost a year after rumors first surfaced that Pioneer was ready to pull the plug on plasma, the company has finally confirmed that it’s true. On Thursday, the company announced that it would kill of its struggling plasma TV business, and skim its global workforce by 10,000 workers as well.
Why abandon ship on perhaps the most universally well-reviewed televisions in the business? Profits. Pioneer has forecast a loss of $1.4 billion for the fiscal year ending March 31, with its display business bleeding the most red ink.
Pioneer plans to shut down two plasma production facilities by April: one in Pomona, California, and the other in Castleford, Britain. The company will continue producing its televisions until March 2010, when production will end for good.
All told, 6,000 of the layoffs will come from Pioneer’s staff of 36,900, while the remaining 4,000 will be made up of contract workers.
It will use the resources recouped from the display business to focus on its remaining businesses, including car electronics, home audio, DJ equipment, and cable-television boxes.
