Japan’s electrical manufacturer Funai Electric Co. has declared bankruptcy, leaving 2,000 employees unemployed overnight, according to reports from the Associated Press. The company is facing a financial crisis compounded by management issues, resulting in debts totaling around 46.1 billion yen. On October 24th, Funai held an emergency meeting to announce the immediate layoffs, shocking many of its employees.
Founded in 1961 and based in Osaka, Funai Electric originated from the transistor radio division of Funai Light Machine Industry, established in 1951. The company produced a variety of products under the “FUNAI” brand, including televisions, audio equipment, video devices, and printers, with significant sales in North America, where it once held the highest market share in the LCD TV sector. However, increased competition from Chinese manufacturers in recent years has led to consecutive operational losses. By the end of March this year, Funai’s liabilities had soared to approximately 46.1 billion yen.
Reports indicate that since March, the frequent turnover in Funai’s management team has resulted in operational confusion. On October 24th, the company received notification from the Tokyo District Court about the commencement of bankruptcy proceedings. Employees were particularly dismayed when they did not receive their salaries on payday, October 25th.
Facing unexpected unemployment, one Funai employee expressed disbelief, saying, “I never thought it would come to this. I’m in complete shock; it’s all over in an instant.” Another employee who has worked at the company for 17 years shared, “Rather than feeling angry, most employees seem to be quietly accepting the reality. We thought the company could hold on for a few more years or even months.”
