Panasonic restructuring cuts 10,000 jobs

Published: Friday, May 9, 2025 at 3:54 pm

Panasonic Announces Massive Job Cuts, Streamlining Operations

Panasonic Holdings is making significant changes to its global operations, announcing plans to cut 10,000 jobs by the end of fiscal year 2026. The announcement, made during an online press conference, highlights the company's struggle with high costs and the need for improved profitability.

The job cuts will be split evenly, with 5,000 positions eliminated in Japan and another 5,000 overseas. This restructuring effort is aimed at streamlining unprofitable operations and improving overall efficiency. The company is taking an $895 million restructuring charge and anticipates a 15.3% decline in profits for the current fiscal year, ending next March.

Panasonic Holdings President Yuki Kusumi cited "extremely high" costs as a primary driver for the drastic measures. He also acknowledged his responsibility for the situation, announcing he would return approximately 40% of his personal compensation. The company plans to thoroughly review operational efficiency across its various subsidiaries, focusing on sales and indirect departments. This will involve reevaluating organizational structures and personnel needs, with the potential for terminating unprofitable operations and closing certain sites.

While the job cuts are undoubtedly difficult, Panasonic expects them to yield positive results. The company projects a profit improvement of $1.07 billion as a direct consequence of the restructuring. The cuts will be implemented in accordance with labor laws and regulations in each country and region.

BNN's Perspective: This is a tough but potentially necessary move for Panasonic. While the job losses are concerning, the company's commitment to streamlining operations and improving efficiency is crucial for long-term sustainability in a competitive global market. The President's acknowledgment of responsibility and the planned compensation reduction are positive signs of accountability. The success of this restructuring will depend on how effectively Panasonic can support its remaining workforce and navigate the challenges of these significant changes.

Keywords: Panasonic, job cuts, restructuring, layoffs, cost-cutting, profitability, Yuki Kusumi, Japan, overseas, streamlining, unprofitable operations, financial results, business news, company news, global economy, employment, efficiency, compensation, fiscal year 2026, Panasonic Holdings

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