Panasonic Corporation has announced plans to reduce its global workforce by approximately 10,000 employees, representing about 4% of its total staff. This decision comes in response to a 17.5% drop in profits for the fiscal year ending March 2025, with earnings falling to 366 billion yen ($2.5 billion) from 443 billion yen the previous year.
The job cuts will be evenly distributed between domestic and international operations, involving early retirements and the consolidation or closure of certain business units. Panasonic attributes the decline in profitability to a slowing global economy and decreased demand for electric vehicles (EVs), although domestic sales of air-conditioners and consumer electronics have remained strong.
Looking ahead, Panasonic aims to improve profits through significant management reforms and operational streamlining, forecasting a profit increase of up to 300 billion yen ($2.1 billion) by fiscal 2029. However, the company anticipates another dip in profits in the upcoming fiscal year. Despite these challenges, Panasonic continues to invest in EV battery production and plans to expand supply partnerships with Japanese carmakers Mazda and Subaru.
CEO Yuki Kusumi expressed regret over the job cuts but emphasized the necessity for long-term improvement. The company remains committed to its strategy of focusing on core competencies and adapting to the evolving market landscape.
