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The local plasma display factory, which employs 130, is expected to close by April. Pioneer has been in the city since 1986 and ranks as one of the top 25 employers in the city.
Pioneer's move is an effort to cope with sinking sales of car audio equipment and flat-screen TVs. The Tokyo-based electronics company will also withdraw from its money-losing plasma display business.
Redevelopment Director Raymond Fong said because Pioneer isn't a retailer, the city won't lose sales tax revenue. It won't lose property tax revenue either. But there is a loss of employment and adjacent businesses will be affected, he said.
"It shouldn't have an immediate impact on the city but Pomona is affected by the overall economy," Fong said.
Hit by the collapse in demand for car audio equipment and plasma TVs, Pioneer said its net loss in the current fiscal year to March will swell to 130 billion yen ($1.4 billion) from its previous estimate of a 78 billion yen net loss. It would be the fifth straight annual net loss for Pioneer.
The company said it will slash 6,000 full-time salaried workers in Japan and abroad, accounting for 16 percent of the company's global work force of 36,900. It will also cut 4,000 contract workers at its Japanese and foreign plants. It did not give a regional breakdown.
In addition to shutting the Pomona plant, Pioneer is also closing a factory in Castleford, Britain, where 220 are employed.
The 350 employees at the two factories are part of the 10,000 people subject to job cuts, said company spokeswoman Ema Suzuki.
The factory closures are part of the plan to withdraw completely from the display business by March 2010, as the company concluded that it would be impossible to turn around that business.
"Since the U.S. financial crisis and ensuing global downturn, our sales of car electronics products and flat-screen TVs plunged worldwide. We were severely hit by battered consumer sentiment," said Michiko Kadoi, another Pioneer spokeswoman.
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