Mitsubishi axes 1,000 as profits take a dive

NEWS Mitsubishi Electric is axing 1,000 and has predicted a 97 per cent fall in net profits for fiscal 2001. The Japanese electronics group now expects a group net profit of Y75bn (£435m), for fiscal 2001, which ends 31 March 2002. The company said in a statement that the weakened economy had meant a reduction in demand for mobile phones and semiconductors. Most of the job losses will occur in Japan but 155 jobs are to go in the US where Mitsubishi plans to close its mobile phone operations. Analysts believe the group needs to look to create a mobile phone alliance in Europe to boost its loss-making operations, with Philips and Siemens being touted as possible partners. On Wednesday, Mitsubishi plans to announce a global restructuring plan to help meet its target of breaking even in the second half of fiscal 2002.