Panasonic to Cut 10,000 Jobs Globally!

Panasonic to Cut 10,000 Jobs Globally! CEO Admits to Feelings of Guilt
Panasonic Holdings of Japan has announced that, in order to promote the group's structural reform, it plans to cut 10,000 jobs globally, including 5,000 employees in Japan and 5,000 overseas employees. The lay - offs are expected to be completed by March 2029. As of March 2024, Panasonic had approximately 228,000 employees globally, and this round of job cuts accounts for about 4% of the total workforce.
CEO Kusuomi Masanori said at a press conference that this decision was "extremely difficult", and he felt deeply uneasy and guilty. However, for the company's sustainable development, it is necessary to change the business foundation and enhance competitiveness. Panasonic will also terminate loss - making businesses and integrate duplicate departments.
This round of job cuts is different from the "largest - ever" lay - offs in 2001 due to poor business performance. Currently, Panasonic is still profitable. The group plans to increase its profit by more than 300 billion yen by the fiscal year 2028 through two key measures: "job cuts" and "business portfolio restructuring".
Panasonic has clearly identified four sectors, including televisions and kitchen appliances, as "problematic businesses". If restructuring is difficult, the company will decide whether to withdraw from or sell these businesses within the fiscal year 2025. In the fiscal year 2024, Panasonic's turnover decreased slightly by 0.5%, and its net profit dropped significantly by 17.5%. Although the reform is expected to result in a loss of 130 billion yen in the fiscal year 2025, Panasonic's share price rose by 2.12% on May 9.