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Panasonic is cutting 10,000 jobs globally in an effort to boost efficiency. Citing slowdown in EV growth and deteriorating profits in the air-conditioning sector as two of the challenges it is currently facing, the Japanese company will make the staff cuts in the current financial year, which ends in March 2026.
In a statement released today, it was revealed that the structural reform will target 5,000 employees in Panasonic’s native country and 5,000 overseas. The company says it expects to incur costs of 130 billion yen (around $900 million) as a consequence of the cuts. Panasonic said it will “thoroughly review operational efficiency at each Group company, mainly in sales and indirect departments, and reevaluate the numbers of organizations and personnel actually needed.”
As a result of the shrinking its workforce and revamping its consumer electronics business, Panasonic aims to achieve an adjusted operating profit of at least 600 billion yen ($4 billion) in the financial year ending March 31 2027, but that doesn’t take into consideration any potential impact from the Trump tariffs.
Panasonic makes a variety of products, from EV batteries it supplies to Tesla, to its consumer-focused cameras and TVs. Panasonic TVs made a return to the US last year after a 10-year absence, but the company has reportedly indicated that it would be willing to leave the sector altogether if it continues to underperform.
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