Panasonic Holdings has announced a significant restructuring plan that includes cutting 10,000 jobs as part of its efforts to overhaul the company’s operations and improve profitability. The move comes as the electronics giant looks to streamline its business after facing financial challenges in recent years.
According to the company’s statement released on Friday, the staff reductions will primarily take place during the current business year. Half of the planned layoffs will occur in Japan, while the remaining half will affect overseas operations. This restructuring is expected to cost the company approximately 130 billion yen ($896.06 million).
The job cuts will be implemented through a consolidation of sales and indirect operations, as well as site closures, business terminations, and early retirement offers for employees in Japan. With a global workforce of around 228,000 employees, Panasonic is looking to optimize its organizational structure to increase efficiency and long-term profitability.
As part of its broader strategy, Panasonic is targeting a return on equity of 10% by the fiscal year ending March 2029. Additionally, the company is setting its sights on achieving a group adjusted operating profit of at least 600 billion yen by March 31, 2027. These goals will be driven by a revamp of its consumer electronics segment, exiting loss-making businesses, and streamlining IT investments to bolster operational efficiency across various divisions.
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According to Reuters, “Almost half of the restructuring costs will be booked in its Lifestyle business, which includes home electronics and heating and ventilation systems, and another 40% in ‘other’ businesses, including its holding company.” The report also mentions that Panasonic does not expect to incur restructuring costs in its energy business, which has shown promising growth projections.
In an update on its energy division, Panasonic forecasted a 39% increase in operating profit for its electric vehicle battery-making business for the fiscal year ending March 31, 2026. This boost is anticipated due to rising sales of batteries and energy storage systems. The division, which supplies batteries to Tesla and other automakers, posted an operating profit of 120.2 billion yen in the previous fiscal year—slightly below its target of 124 billion yen.
Despite these positive developments in the energy sector, Panasonic expects a 13% decline in operating profit company-wide for the current business year, bringing the figure down to 370 billion yen as it navigates through its restructuring process.
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