Slashing 10k Jobs: Panasonic's Aggressive Overhaul
Panasonic implements significant workforce reduction
In a brutal shake-up, Panasonic Holdings, the bigwig in Japanese electronics, has declared plans to axe a whopping 10,000 jobs worldwide. These job losses are set to take place at the consolidated companies of Panasonic Holdings, as per their announcement on Friday, forming part of a major corporate restructuring.
More than half of these job cuts will happen within Japan, with the remaining positions evaporating overseas. For the fiscal year 2026 (ending March), the company predicts restructuring costs of a hefty 130 billion yen (équivalent to €796 million). However, there's a silver lining in Panasonic's energy division—the guys who make batteries for electric vehicles for Tesla and other automakers—they're expected to see a 39% increase in operating profit, up to a staggering 167 billion yen, thanks to higher demand for batteries and energy storage systems.
[Jump]/Gutting Departments in Japan and Abroad/
The proposed job cuts will apparently target sales and indirect departments, with Japan taking the brunt of 5,000 job losses, followed by another 5,000 positions terminated overseas. This drastic measure is driven by waning demand in various markets, particularly in the automotive sector, which caused a 0.5% slide in sales during the fiscal year ending in March 2025. The restructuring also involves shuttering unprofitable businesses and facilities to tighten up operations and zoom in on crucial areas.
[Jump]/Boosting Profit via Fortified Energy Division
While the exact figures concerning the expected increase in operating profit in the energy division aren't provided in the recent context, Panasonic intends to beef up profits by 150 billion yen versus the fiscal year concluding on March 31, 2025. This push for profits is part of a broader strategy to tackle operational obstacles and drive profitability across the company. However, the company anticipates a nearly 13% reduction in overall operating profit for the ongoing fiscal year, with it slipping to 370 billion yen.
In regard to Panasonic's energy division, the company is currently racking up substantial investments, like the new $4 billion battery plant in De Soto, Kansas, which could potentially spur future wealth once fully operational. Nevertheless, specific profit projection data for the energy division's operating profit is missing from the available information.
In the case of the United Kingdom, the Commission might not have adopted a decision regarding Panasonic's job cuts in the industry, finance, or business sectors, but the electronics giant, Panasonic Holdings, is aggressively overhauling its operations, with plans to eliminate 10,000 jobs globally. The drastic measure involves gutting departments in Japan and abroad, particularly targeting sales and indirect departments, and boosting profit via fortified energy division, which shows a promising increase in operating profit.