Panasonic has announced a sweeping global restructuring plan that will see approximately 10,000 jobs eliminated—around 4% of its 230,000-strong workforce. The job cuts will be evenly divided between Japan and overseas operations as the company seeks to streamline its structure and enhance efficiency amid slowing demand and changing market dynamics.
The Osaka-headquartered electronics giant has launched early retirement programs in Japan and is shutting down or consolidating several facilities worldwide. The restructuring aims to create a leaner, more agile organization capable of responding to market shifts. Panasonic, known for its wide range of products including home appliances, EV batteries, facial-recognition technology, and solar solutions, is confronting headwinds, particularly in the electric vehicle segment.
For the fiscal year ending March, Panasonic reported a 17.5% decline in net profit, which fell to 366 billion yen ($2.5 billion) from 443 billion yen the previous year. Weak global economic conditions and reduced demand for EVs were key contributors to the decline, though domestic sales of air conditioners and consumer electronics remained stable.
Looking ahead, Panasonic plans to boost profits by 150 billion yen ($1 billion) by FY 2026–27 and by 300 billion yen ($2.1 billion) by FY 2028–29. This will involve exiting unprofitable segments and reshaping operations to align with future growth areas. The company has reaffirmed its commitment to the EV battery sector, bolstering its supply chain through new partnerships with Mazda and Subaru, underlining its focus on electric mobility as a key pillar of its transformation strategy.
