The incident underlines how difficult it can be for multinationals, which have been announcing large-scale redundancies in several countries over the past months, to introduce even modest staff cuts in China.
Panasonic said this month it would cut 15,000 jobs, or 5 per cent of its workforce, and close several factories this year. The group has already closed electronic component plants in Japan, Indonesia and Malaysia but has otherwise given little detail for the overall downsizing plan.
Panasonic Electronic Devices (Beijing), which makes tuners, speakers and other electronic parts, said on Friday it would not close its plant, and would only seek voluntary job cuts. But even that triggered panic among the workforce.