Panasonic is known for its televisions and household appliances, but the group is also heavily involved in sectors as diverse as avionics systems, air quality solutions, and even batteries for electric cars (it is a supplier to Tesla, for example). The company forecasts a 13% drop in profits for the current fiscal year, to $2.5 billion.
A restructuring that comes at a cost
The slowdown in growth in electric vehicle sales and declining profits in the air conditioning segment partly explain the announcement of 10,000 layoffs. Half will affect Japan, the other half the rest of the world. Panasonic plans to make this cut—just over 4% of its workforce—by the end of the current fiscal year, or until March 2026. Last year, the group employed nearly 230,000 people.
The layoffs will mainly take place in sales and operations. There will be a "reassessment of the number of organizations [within the conglomerate] and staffing needs." The restructuring will result in costs of approximately $900 million. Nearly half of these costs will be attributed to Panasonic's Lifestyle division, which includes consumer electronics and heating and ventilation systems.
Another 40% or so will be recorded in "other" businesses, including the group's holding company. No restructuring costs are expected in the energy division. The restructuring will enable the company to achieve a target of at least €4 billion in operating profits for the next financial year 2026/2027.
Source: Reuters
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