Panasonic To Eliminate 10,000 Jobs As Profits Slide

For the current fiscal year, Panasonic projects a 13% drop in operating profit to 2.5 billion — an estimate that does not account for potential impacts from future U.S. trade policy changes.

Panasonic will slash 10,000 jobs globally and shut down select operations as part of a large-scale restructuring that’s meant to curb costs and respond to weakening demand.

The Japanese electronics giant said it will eliminate 5,000 roles domestically and another 5,000 across international locations. The downsizing will primarily affect sales teams and back-office departments.

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Alongside the layoffs, Panasonic plans to exit certain loss-making business areas and shut underutilized facilities, according to Manufacturing Dive.

The company currently operates a lithium battery plant in Sparks, Nevada, which supplies Tesla, and maintains a nearby office in Reno. It is also preparing to open a $4 billion battery factory in De Soto, Kansas, later this year.

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Panasonic expects to incur a one-time expense of 130 billion yen (approximately $879 million) related to the restructuring. The company says it is targeting cost cuts at its headquarters, IT systems worldwide, and within its consumer electronics operations.

Sales for the fiscal year ending in March dropped 0.5% to 8.5 trillion yen, with weaker performance in its automotive division weighing on overall results. For the current year, Panasonic projects operating profit to fall 13% to 370 billion yen. The forecast excludes any possible effects from future U.S. trade policy changes.

These measures are part of a push to improve margins and stabilize the company’s performance as global demand softens.