But while such changes may be easy to articulate, they are hard to implement. For all of its talk, Matsushita has been slow to dismantle its lifetime employment commitment to those hired under the traditional system. This was underlined in early 2001 when, in response to continued poor performance, Matsushita announced it would close 30 factories in Japan, cut 13,000 jobs including 1,000 management jobs, and sell a “huge amount of assets” over the next three years. While this seemed to indicate a final break with the lifetime employment system- it represented the first layoffs in the company’s history- the company also said unneeded management staff would not be fired but instead transferred to higher growth areas such as health care.
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