Panasonic says that it will reduce its global workforce by 10,000 people, half in Japan and half abroad, to become a more efficient and “thin” “company”, the Japanese manufacturer said Friday that the work reduces approximately 4% of Panasonic workers, Wil …
Tokyo – Panasonic will reduce its global workforce by 10,000 people, half in Japan and half abroad, to become a more efficient and “thin company,” the Japanese manufacturer said on Friday.
Employment cuts, which amount to approximately 4% of their 230,000 workers, will include early retirement offers in Japan and closures and consolidation of several operations, according to the manufacturer of appliances based in OSAKA, such as washing machines and refrigerators.
Panasonic also manufactures solar panels, delivery robots, facial recognition technology, fuel cells for households and EV batteries for Tesla cars.
Also on Friday, Panasonic reported a 17.5% drop in profits for the fiscal year until March 366 billion yen ($ 2.5 billion), below 443 billion yen in the previous fiscal year. Sales totaled 8,46 billion yen ($ 58 billion), 0.5% less interannual.
The company said that the deceleration of the global economy and the weakest demand for electric vehicles were a factor behind its weak results. But sales of air conditioners and consumer electronic products were maintained in Japan, he said.
The company’s executive director, Yuki Kusumi, told reporters that his heart felt heavy when announcing employment cuts. Panasonic did not mention the tariff policies of US President Donald Trump as a factor behind his drop in profits.
Panasonic predicts that their profits will improve at least 150 billion yen ($ 1 billion) for the fiscal year until March 2027, and at 300 billion yen ($ 2.1 billion) for the fiscal year until March 2029.
This will be achieved through the management reform, the closure of non -profitable companies and the construction of a system that responds more to changes in the business environment, authorities told reporters.
But the change will take time and the profits will slide even more in this fiscal year. For the fiscal year until March 2026, Panasonic is projecting a gain of 310 billion yen ($ 2.1 billion) in sales of 7.8 billion yen ($ 54 billion).
Panasonic said that it is still optimistic about EV batteries and plans to supply Japanese car manufacturers Mazda Motor Corp. and Subaru Corp. in new strategic associations.
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