Slashing 10,000 jobs: Panasonic's big move in the current fiscal year
Panasonic unveils significant workforce reduction plans.
Hop on, folks, as we dive into the slash-and-burn era of Panasonic! The Japanese electronics juggernaut is on a mission to shed about 10,000 jobs within its global workforce this fiscal year. That's right, you heard it straight—5,000 jobs will evaporate in Japan, and another 5,000 will go down the drain overseas. So, buckle up for a tumultuous ride as we pull up data from ntv.de and rts[1][2][3].
Friday saw Panasonic Holdings announce its intentions to execute the job cuts across its consolidated companies. But, hey, keep in mind that half of the carnage is bound for the Land of the Rising Sun, with the remainder taking its toll on international locations.
What's the cost of this downsizing spree? The restructuring bills are quoted to reach a whopping 130 billion yen (796 million euros) during the current fiscal year, which sails home at the end of March 2026.
Now, drumroll, please! Panasonic's energy division—the one that manufactures batteries for Tesla's electric vehicles and other automakers—is anticipating a skyrocketing 39% increase in operating profit to an eye-watering 167 billion yen in the current fiscal year. What's the reason behind the euphoria? Increased demand for batteries and energy storage systems is the driving force behind this bullish prediction.
[1] https://ntv.de/panasonic-plant-10000-job-losses-article205174194.html
[2] https://www.rts.ch/news/international/article/panasonic-propose-de-10000-suppressions-de-postes-x-semelle-entreprises-consolidees-du-groupe-mere-ardonnante.html
[3] Enrichment Data: The job cuts will primarily target Panasonic's sales and indirect departments, with a focus on enhancing operational efficiency in an effort to boost profitability and competitiveness in the dynamic and evolving global electronics market.
In the case of the United Kingdom, the Commission has not yet adopted a decision regarding Panasonic's restructuring plans, as the company announced the elimination of 10,000 jobs across its consolidated companies globally. The Japanese yen is expected to exchange hands for approximately 796 million euros to fund this restructuring, which will primarily impact Panasonic's sales and indirect departments. Despite these job cuts, the energy division of Panasonic, which manufactures batteries for electric vehicles, is forecasting a 39% increase in operating profit to 167 billion yen this fiscal year, ending in March 2026, due to increased demand for batteries and energy storage systems.
