Panasonic Holdings, the electronics giant, has announced plans to reduce its workforce by 10,000 employees.
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The Japan-based company announced on Friday its plans to cut 10,000 jobs as part of a larger strategy to boost profitability. According to Panasonic, per Fox Business, half of the layoffs will affect workers in Japan, while the remaining 5,000 positions will be eliminated in other countries.
“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 explained, per Fox Business. “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.”
The company anticipates implementing the job cuts during its fiscal year 2026.
Panasonic announced that its broader “structural reform” will focus on streamlining and consolidating indirect functions and operations at its headquarters. The initiative will also involve prioritizing and concentrating on key technology projects, among other measures.
Panasonic Also Plans to Streamline IT Investments
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 added.
As part of its restructuring efforts, Panasonic plans to optimize and streamline its IT investments.
Panasonic anticipates a minimum profit boost of 150 billion yen (USD 1 billion) as a result of various measures put in place. Of this, the company attributes 70 billion yen (USD 483 million) to cost savings from planned job cuts.
The restructuring planned for fiscal 2026 will incur “structural reform costs” amounting to 130 billion yen.
The electronics manufacturer projects net sales of 7.8 trillion yen and a net profit of 310 billion yen for fiscal 2026. Panasonic announced the planned job cuts on the same day it released its financial results for fiscal 2025.
The company reported net sales of 8.46 trillion yen for the 12-month period, a slight decrease of about 0.5% compared to the previous year. Its annual net profit attributable to shareholders dropped to 366.2 billion yen.