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Electronics maker Panasonic Holdings is cutting 10,000 jobs from its workforce.
The Japan-based company announced the job cuts on Friday as part of a broader effort to increase its profitability moving forward.
Of the 10,000 employees slated to lose their jobs, half will be workers in Japan, according to Panasonic. The other 5,000 will be in other countries.
A man walks past the Panasonic Centre in Tokyo on May 9, 2024. (YUICHI YAMAZAKI/AFP via Getty Images / Getty Images)
“In terms of management reform, toward transformation into an organization where individual employees create higher productivity, the Company will thoroughly review operational efficiency at each Group company, mainly in sales and indirect departments, and reevaluate the numbers of organizations and personnel actually needed,” the company said. “In addition, the Company will promote the termination of loss-making businesses with no prospects of improving profit, as well as the integration and closing of sites.”
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The job cuts are expected to take place in the company’s fiscal year 2026.
Panasonic said the overall “structural reform” it is undertaking will involve “consolidation and streamlining of indirect functions and operations, as well as selection and concentration of technology projects, etc.” at its headquarters.
In its consumer electronics business, it is also seeking to improve profitability with consolidation of certain departments and “building global-standard cost capabilities,” the company said.
Panasonic will streamline its IT investments as part of the restructuring, too.
With the various measures Panasonic is implementing, the electronics maker said it expects to see a 150 billion yen ($1B USD) improvement in profit at minimum. The job cuts will bring 70 billion yen ($483M USD) of that, according to the company.
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It will face “structural reform costs” of 130 billion yen from the restructuring in fiscal 2026.
Panasonic said it took that into account in its forecast for that year but noted it “may change depending on the number of employees involved in the final optimization and on other factors.”
The Panasonic logo is seen during the Ceatech event on Oct. 16, 2024 in Chiba, Japan. (Tomohiro Ohsumi/Getty Images / Getty Images)
The electronics maker said it anticipates net sales of 7.8 trillion yen and a net profit of 310 billion yen in fiscal 2026.
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Panasonic’s announcement of the planned job cuts came on the same day that it released its financial results for fiscal 2025.
The company generated 8.46 trillion yen in net sales during that 12-month period, an approximately 0.5% decrease from the prior year. Its annual net profit attributable to shareholders, meanwhile, narrowed to 366.2 billion yen.
