Panasonic Holdings, the electronics manufacturer, is set to reduce its workforce by 10,000 jobs as part of an initiative aimed at boosting profitability.
The company revealed on Friday that this job cut includes around 5,000 positions in Japan, with the remaining cuts distributed across other countries.
In their statement, Panasonic emphasized its desire for management reform, aiming to create an environment where employees can enhance productivity. They plan to assess operational efficiency across various divisions, particularly in sales and support roles, and will consider which organizational structures and personnel are truly necessary.
Moreover, the company intends to phase out unprofitable ventures that lack any prospects for improvement, as well as refrain from approving any site consolidations or closures.
Employment reductions are anticipated to begin in 2025, coinciding with the company’s fiscal year 2026. This overall “structural reform” will also involve integrating and streamlining back-end functions, as well as selectively concentrating on specific technology projects.
In an effort to enhance profitability within its home appliance segment, Panasonic aims to consolidate some divisions to establish a “global standard cost capacity.” They also plan to reduce IT expenditures as part of this restructuring.
Through these measures, Panasonic expects to generate at least 150 billion yen (approximately $1 billion) in profit, with the workforce reductions contributing about 70 billion yen (around $483 million) of this total.
The company is facing a “structural reform cost” of 130 billion yen as part of its 2026 restructuring. Panasonic has factored this into their financial forecasts, but noted that projections might vary depending on the final number of employees affected and other variables.
The electronics giant also reported net sales of 8.46 trillion yen over the last year, a slight decline of 0.5% compared to the previous year. Additionally, annual net income attributed to shareholders was 36.62 billion yen.
