Panasonic Holdings announced plans to cut 10,000 jobs and anticipates incurring restructuring costs amounting to 130 billion yen ($896.06 million) in the current business year.
The big picture: The job reductions will be implemented mainly within the ongoing business year, with an equal split between positions in Japan and overseas locations. The cuts will focus on consolidating sales and operations, closing down certain businesses, and encouraging early retirement for employees in Japan.
- Panasonic, with approximately 228,000 employees globally, aims to enhance group profitability and achieve a return on equity of 10% by the fiscal year ending in March 2029 through this restructuring.
- The corporation is targeting a minimum group adjusted operating profit of 600 billion yen by March 31, 2027, attributed in part to restructuring its consumer electronics division, discontinuing unprofitable ventures, and optimizing IT investments.
Go deeper: The ongoing overhaul will involve reassessing the operational efficacy of group companies, particularly in sales and back-office functions, as part of an update to the restructuring plan outlined earlier in February.
- Nearly half of the restructuring expenses will be allocated to Panasonic’s Lifestyle business segment, while 40% will affect “other” divisions, excluding the energy sector. The company does not foresee restructuring costs in its energy business.
- Panasonic projects a 39% upsurge in operating profit for its electric vehicle battery business this year, anticipating 167 billion yen in earnings, driven by projected growth in battery and energy storage system sales.
- Despite the positive forecast for the energy segment, the company expects a 13% dip in overall operating profit for the fiscal year to 370 billion yen.
