TOKYO (dpa-AFX) - Japanese electronics major Panasonic Holdings Corp. (PCRFY.PK) announced Friday that it will target cutting about 10,000 jobs or 4 percent of its global workforce as part of its management reform in an effort to resolve its various structural issues, enhance operational efficiency and boost profitability.
The management reform is based on the 'Outline of Panasonic Group Management Reform' released on February 4, 2025.
This move will see 5,000 job cuts in Japan and 5,000 in overseas to enable the company to become a more efficient and lean company. This will be implemented by offering early retirement in Japan as well as closures and consolidation of various operations.
Panasonic said it will thoroughly review operational efficiency at each group company, primarily in sales and indirect departments, and reevaluate the numbers of organizations and personnel actually required.
The Company will optimize its personnel on a global scale by promoting the termination of loss-making businesses with no prospect of improving profit, as well as the integration and closing of sites.
The company said it aims to improve profitability by at least 150 billion yen or $1 billion, through the management reforms, in the third quarter of fiscal 2027, compared to the third quarter of fiscal 2025. This will also enable the company to achieve adjusted operating profit of at least 600 billion yen in the third quarter of fiscal 2027.
The company looks to improve profitability by more than 47 billion yen through headquarters reform, by more than 33 billion yen through consumer electronics business reform and by more than 42 billion yen through business sector reform.
The company added that it will also consider profit improvements in business areas where upfront investments were made, such as automotive batteries. Panasonic is a major supplier of batteries to Elon Musk's electric vehicle maker Tesla.
Panasonic said it will incur structural reform costs of 130 billion yen in the third quarter of fiscal 2026 amid the group's management reform, including personnel optimization.
Separately, Panasonic also reported a 17.5 percent decline in profit to 366.21 billion yen for fiscal 2025 from 443 billion yen in fiscal 2024. Earnings per share were 156.83 yen compared to 190.15 yen a year ago. Sales for the year also edged down 0.5 percent to 8.46 trillion yen from last year. The company said results were hit by weaker demand for electric vehicles and the slowing global economy.
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