Panasonic implements significant workforce reduction plan
Title: Panasonic slashes 10,000 jobs worldwide: Here's the skinny on the cuts
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Japanese electronics giant, Panasonic, has dropped a bombshell: they're set to terminate around 10,000 jobs across the globe! The job butcher's bill, announced on Friday by Panasonic Holdings, will primarily target consolidated companies within their sphere.
Half of the impending job cuts will bite deep in Japan, with the remaining half leaving overseas departments in shambles. The company predicts a hefty restructuring bill of 130 billion yen (roughly 796 million euros) for the fiscal year ending March 2026.
Piece of good news though, Panasonic expects its energy division, flooding the market with batteries for electric vehicles and energy storage systems, to surge its operating profit by 39% to 167 billion yen in the current fiscal year. The rosy forecast is ascribed to increasing demand for batteries and energy storage systems.
So, what exactly gets cut? Sales teams and back-office departments are among the primary targets, following Panasonic's desire to exit unprofitable business areas and shut down idle facilities to improve efficiency.
It's a part of a larger restructuring movement, born out of responding to dwindling demand, especially in the automotive division. The restructuring plan carries a hefty one-time cost of about 130 billion yen (approximately $879 million).
[1] ntv.de
[2] rts
[3] Bloomberg
In the case of the following industries, finance and business are expected to be significantly impacted by Panasonic's massive job cuts: the automotive division, where dwindling demand is a major factor, and the back-office and sales departments, which are primary targets for the restructuring plan. Moreover, the global industry could potentially experience a ripple effect due to Panasonic's restructuring bill of 130 billion yen, which equates to around 796 million euros.