Panasonic is set to reduce its global workforce by 10,000 employees as part of a large-scale restructuring initiative. The job cuts will be evenly split between Japan and international locations, affecting approximately four per cent of the company’s 2,30,000-strong workforce.
The move, it is hoped, will streamline operations and boost efficiency amid weakening demand and shifting market dynamics.
The Osaka-based electronics manufacturer is initiating early retirement programmes in Japan while shutting down and consolidating several of its operations worldwide. The goal is to transform into a leaner, more responsive organisation. Panasonic, known for its consumer appliances such as washing machines and refrigerators, also operates in areas such as EV batteries, facial- recognition technology, solar panels, and fuel cells.
The announcement comes as the company reported a sharp 17.5 per cent drop in annual profit. For the fiscal year ending March, net profit fell to 366 billion yen ($2.5 billion), down from 443 billion yen the previous year. Sluggish global economic conditions and weaker demand for electric vehicles weighed heavily on performance. However, domestic sales of air-conditioners and consumer electronics remained stable.
Panasonic has outlined a long-term plan to recover profitability. It expects to boost profits by 150 billion yen ($1 billion) by the fiscal year ending March 2027 and by 300 billion yen ($2.1 billion) by March 2029. This will require ditching unprofitable segments and restructuring its operations in line with market shifts.
The company has also reaffirmed its commitment to the EV battery market. It is expanding its supply network through new partnerships with Japanese auto firms Mazda and Subaru, choosing to focus on electric mobility too.
