Panasonic has announced plans to reduce its global workforce by 10000 employees: roughly 4% of its total strength. The decision is part of a sweeping restructuring plan aimed at boosting operational efficiency and improving profitability. The move comes as the company battles stiff competition from Chinese electronics firms and struggles with rising internal costs.
Job Cuts Across Japan and Overseas
Of the total cuts, 5000 jobs will be eliminated in Japan and 5000 overseas. This downsizing will take place primarily within the fiscal year ending March 2026. The company expects to incur a restructuring cost of 130 billion yen (about 894.6 million US dollars) due to the layoffs.
Management Speaks Out
Panasonic President Yuki Kusumi stated in a press conference that the company’s fixed-cost structure is no longer sustainable. Compared to industry rivals like Sony and Hitachi, Panasonic has lagged behind in profit margins. Kusumi emphasized the urgent need to overhaul back-office functions and merge sales divisions to stay competitive.
Consumer Electronics Division in the Crosshairs
The company has identified consumer electronics—its core segment involving fridges, TVs, and microwaves—as one of the hardest-hit areas. Market share losses in Japan and Southeast Asia to Chinese players like Haier and Midea have weakened Panasonic’s foothold. These divisions, along with administrative roles, may face the brunt of the job cuts.
External Headwinds Add Pressure
Apart from internal inefficiencies, Panasonic is dealing with potential US tariffs on its North American supply chain and a slowing electric vehicle market. Even as Tesla’s battery supplier, Panasonic faces uncertainty. Meanwhile, its Vision Pro VR headset and new AI gadgets have seen limited success, highlighting challenges in innovating beyond traditional electronics.
No Clear Turnaround Plan Yet
While Panasonic may consider selling off its TV business entirely, no final decisions have been made. President Kusumi admitted the global TV market is “structurally challenging,” and hinted at deeper partnerships with external manufacturers as a possible way forward.
Conclusion
Panasonic’s latest restructuring signals a tough road ahead. The company hopes leaner operations and strategic exits will help it survive in an increasingly competitive tech landscape.
