Panasonic cuts mobile phone jobs

Panasonic is to cease production of mobile phones at a UK factory with the loss of 350 jobs.

The Japanese company blames falling demand for mobile phones. It will end manufacturing by the end of the year at the Thatcham plant near Newbury in Berkshire.

Masahiko Yamamoto, managing director of Matsushita, which owns the Panasonic brand name, says it is a "sad day" because the plant has an excellent reputation for quality and productivity.

The Amalgamated Engineering and Electrical Union says the work is being switched to the Czech Republic.

Sir Ken Jackson, the union's general secretary says: "This is the latest in a series of manufacturing jobs that have been lost to the Czech Republic.

"The Czech government is pushing its manufacturing hard on the world stage. We need the British government to attach the same importance to British manufacturing."

Matsushita has already announced that mobile phone manufacturing would start in the Czech Republic next year.

Mr Yamamoto says: "It is external pressures such as the downturn in the European market for mobile phones coupled with unfavourable exchange rates that has led to this regrettable decision.

"We have been a key employer in the local community and will make every effort to minimise the impact of this decision."

The company employs around 4,000 workers in the UK and says it will look to see if there are vacancies which could be offered to staff at Thatcham. The Thatcham factory opened in 1988 and won a Queen's Award for Export in 1997.