Hitachi splits electronics and automotive divisions to cut costs

So, the economy is pretty depressing right now. And it seems everywhere we look, there's another company going under or having to undergo serious restructuring. The latter is the case with Hitachi. In order to keep afloat, the company is splitting two of their major components into separate divisions.

Hitachi is primarily known for their consumer electronics division, but they also make car parts in Asia. These two divisions are now being split in order to save the company. But it was at a significant cost. Apparently, Hitachi lost $7 billion last year and to cut their losses, they've cut 7,000 jobs. This resulted in a cost savings of $5.1 billion, but that's a hard pill to swallow in this economy.

When all is said and done, the consumer electronics division will employ 750 people and the automative division will employ 2,700 people. It's somewhat of an interesting disparity, when you think about it, but if this is what HItachi feels will save them, it's probably for the best.

[via CrunchGear]