Panasonic announced in May 2025 that it will cut 10,000 jobs globally, representing about 4% of its total workforce of approximately 230,000 employees.
The layoffs will be evenly split, with 5,000 positions eliminated in Japan and 5,000 overseas, primarily targeting sales and indirect departments.
The restructuring is expected to incur costs of approximately 130 billion yen ($896 million) and aims to improve profitability by at least 150 billion yen ($1 billion) by March 2027.
CEO Yuki Kusumi expressed remorse over the layoffs and announced he would return approximately 40% of his compensation as a gesture of accountability.
The job cuts are part of a broader strategy to streamline operations, including the consolidation of sales and indirect functions, termination of loss-making businesses, and optimization of IT investments.
Panasonic's restructuring efforts are also influenced by a decline in demand for electric vehicles, affecting its battery business, and increased competition in the consumer electronics market.
The company plans to focus on high-growth areas such as artificial intelligence, energy storage, and aviation electronics, while exiting low-margin segments.
Despite the layoffs, Panasonic continues to invest in its energy business, which supplies batteries to Tesla and other automakers, anticipating a 39% increase in operating profit for this division in the fiscal year ending March 2026.
The restructuring is scheduled to take place primarily within the fiscal year ending March 2026, with all layoffs conducted in accordance with local labor laws and regulations.
Panasonic aims to achieve a return on equity of 10% by the fiscal year ending March 2029 through these comprehensive management reforms.