Panasonic is set to reduce its global workforce by 10,000 jobs, which is 4% of its total employees. This move comes as part of a major restructuring effort across the company’s business sectors, including consumer electronics. The Japanese company wants to streamline its operations by restructuring struggling divisions in an attempt to recover lost market share and compete with Chinese rivals. The job reductions will be divided equally, affecting 5,000 employees in Japan and 5,000 overseas, primarily within the fiscal year ending March 2026. Panasonic anticipates a 130 billion yen ($894.6 million) charge against its earnings due to this restructuring.
What the company said about cutting 10,000 jobs
In an online news conference (seen by Nikkei Asia), President Yuki Kusumi said: "Compared with industry peers that have already moved ahead with structural reforms, our selling, general and administrative expenses ratio remains exceptionally high. We urgently need to overhaul our fixed-cost structure fundamentally.”
The company also stated that it plans to boost profitability by merging its sales divisions and back-office functions across the group. It also intends to exit or wind down any loss-making operations, the report added. However, the report did not specify which business lines will be reduced.
As per the report, Panasonic has long underperformed its domestic peers—posting operating-profit margins of just 3.4–5.0% over the last five years, well below Sony and Hitachi—largely because its core consumer-electronics lines (fridges, microwaves, TVs) have ceded market share in Japan and Southeast Asia to Chinese rivals like Haier and Midea.
To shore up profitability, Panasonic’s job cuts may hit the consumer-electronics division hardest, followed by back-office functions.
Beyond internal restructuring, Panasonic faces external headwinds: potential US tariffs on its North American supply chain and a subdued electric-vehicle market (despite being Tesla’s main battery supplier).
Its Vision Pro VR headset has seen only lukewarm adoption, and niche, screen-free AI gadgets haven’t gained traction, highlighting the difficulty of replacing traditional smartphones and TVs.
TVs in particular have lost ground; President Yuki Kusumi has even said the company is “prepared to sell [the business] if necessary,” though no final decision has been made. Kusumi has declined to detail a turnaround plan for consumer electronics, calling the global TV market “structurally challenging” and suggesting options like deeper partnerships with external manufacturers (Panasonic already outsources some TV production in Asia).
What the company said about cutting 10,000 jobs
In an online news conference (seen by Nikkei Asia), President Yuki Kusumi said: "Compared with industry peers that have already moved ahead with structural reforms, our selling, general and administrative expenses ratio remains exceptionally high. We urgently need to overhaul our fixed-cost structure fundamentally.”
The company also stated that it plans to boost profitability by merging its sales divisions and back-office functions across the group. It also intends to exit or wind down any loss-making operations, the report added. However, the report did not specify which business lines will be reduced.
As per the report, Panasonic has long underperformed its domestic peers—posting operating-profit margins of just 3.4–5.0% over the last five years, well below Sony and Hitachi—largely because its core consumer-electronics lines (fridges, microwaves, TVs) have ceded market share in Japan and Southeast Asia to Chinese rivals like Haier and Midea.
To shore up profitability, Panasonic’s job cuts may hit the consumer-electronics division hardest, followed by back-office functions.
Beyond internal restructuring, Panasonic faces external headwinds: potential US tariffs on its North American supply chain and a subdued electric-vehicle market (despite being Tesla’s main battery supplier).
Its Vision Pro VR headset has seen only lukewarm adoption, and niche, screen-free AI gadgets haven’t gained traction, highlighting the difficulty of replacing traditional smartphones and TVs.
TVs in particular have lost ground; President Yuki Kusumi has even said the company is “prepared to sell [the business] if necessary,” though no final decision has been made. Kusumi has declined to detail a turnaround plan for consumer electronics, calling the global TV market “structurally challenging” and suggesting options like deeper partnerships with external manufacturers (Panasonic already outsources some TV production in Asia).
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