Panasonic has stated it will be slashing its global workforce by roughly 10,000 people, with half of those job cuts occurring in Japan where the company is based. The rest will occur in its overseas departments. The goal, according to Panasonic is to become a more efficient, “lean” company.
The cost cutting efforts by Panasonic will result in a 4% reduction in its total global workforce.
The news follows the company’s most recent earnings call, which saw a 17.5% drop in profit for the fiscal year through March while sales dropped 0.5% YoY. Losses in the electric vehicle (EV) sector were cited as a contributing factor while air conditioning units and consumer electronics were strong performers in Japan.
Last year, the company re-entered the U.S. market for TVs with a new range of OLED and Mini-LED launching this year. However, reports have already begun to circulate that the company may be mulling a U.S. exit once again as sales have been reportedly lackluster both in the U.S. market and Japan. This, even though its TVs have received glowing reviews.
As part of the company’s belt-tightening efforts, it has stated it will be consolidating various operations related to home appliance production. The company has also stated in separate news that it will be exiting the solar and energy storage market. Despite this, the company will continue to manufacture electric vehicle (EV) batteries and remains bullish on the future of EVs moving forward.
There is no word that Panasonic’s TV lines will be affected by these developments, however, the company has stated that it plans to improve business profits by at least $1 billion through March 2027 and $2.1 billion by the fiscal year through March 2029. In achieving this goal, the company plans to conduct multiple rounds of business reform while closing what it deems as being “unprofitable business” segments.
No comments were made on the current state of tariffs (which currently stand at 24% for all Japanese goods coming into the U.S.) impacting business. Nor have any comments been made regarding potential competition eating into Panasonic’s market share.
