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Japan's TDK to slash 8,000 jobs

  • Story Highlights
  • Japanese electronic component maker TDK to close four plants, slash 8,000 jobs
  • TDK is set to post its biggest ever annual net loss -- around $280 million
  • TDK hit by fall in demand for products and surging yen
  • Plants expected to be closed outside Japan
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TOKYO, Japan (CNN) -- Electronic components maker TDK Corp. said Thursday it will slash 8,000 jobs worldwide and shut down four of its plants as it readies to post its biggest annual net income loss.

TDK did not say what plants it intends to close, but they are expected to be outside Japan. The company will also close a research facility.

The moves come amid a global financial slump. The company had predicted it would make $250 million in net profit by the time the fiscal year ends in March. Now, it thinks it will post its biggest annual net income loss in history -- $280 million.

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The company is also predicting an operating loss for the fiscal year. The loss - $260 million -- is the first operating loss for the company in seven years, it said.

Two factors have led to TDK's misfortune: less demand for its products due to the global financial crisis, and a surging yen that has made it more expensive for TDK to operate.

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