Japanese Electronics Giant Panasonic Slashes 10,000 Jobs
Panasonic unveils significant workforce reduction
Get ready for some major changes at Panasonic, folks! The company behind your favorite electronic goodies is chopping 10,000 jobs worldwide. Panasonic Holdings dropped the bombshell on Friday.
The axe will primarily swing within the consolidated companies of the holding, with about half the layoffs happening in Japan and the rest overseas. For the current fiscal year 2026 (ending March), Panasonic anticipates restructuring costs of a hefty 130 billion yen (796 million euros).
But don't fret electric vehicle (EV) enthusiasts, Panasonic's energy division is projected to see a surge in operating profit, thanks to increased demand for batteries and energy storage systems. The division is expected to rake in an impressive 167 billion yen in the current fiscal year, marking a 39% boost.
So, why the severe shakeup? Panasonic's finances have been on a downward spiral, with a swoon in net profit for the fiscal year ending in March 2025. Factors contributing to this slip included a rebound in corporate tax payments and hiccups in the global electronics market.
The company also aims to give its operational efficiency a much-needed overhaul, with a focus on sales and indirect departments worldwide. The objective? Optimize personnel needs and boost productivity among the workforce.
This job-cutting spree will claim around 4% of Panasonic's workforce of almost 230,000 employees. About 5,000 workers in Japan and another 5,000 overseas are in the firing line[3][4]. These moves are projected to result in a hefty 130 billion yen restructuring bill for the fiscal year[3].
- In the case of the United Kingdom, the Commission, as of yet, has not adopted a decision regarding Panasonic's restructuring plans, which involve the significant reduction of their workforce by 10,000 employees across the globe.
- Despite the job cuts, Panasonic anticipates an increase in operating profit for its energy division, as it prepares to capitalize on the growing demand for batteries and energy storage systems, generating approximately 167 billion yen in the current fiscal year ending in March 2026.
- The decision to restructure and cut jobs is primarily due to Panasonic's deteriorating financial situation, which includes a decline in net profit for the fiscal year ending in March 2025, attributed to corporate tax payment rebounds and challenges in the global electronics market.
- The restructuring process includes a global focus on optimizing personnel needs and enhancing productivity in sales and indirect departments, as part of Panasonic's plans to overhaul its operational efficiency.
