Panasonic will lay off 10,000 employees in 2025, targeting 5,000 jobs in Japan and another 5,000 overseas.
The Osaka-based group, which employs nearly 230,000 people globally, is restructuring its operations after reporting a 17.5% drop in net profit to ¥366 billion for the year ended March 31.
The company expects profit to fall another 15% this year, with sales down 8%.
This move is part of a broader efficiency drive triggered by weakening demand for electric vehicle batteries, ongoing structural inefficiencies, and growing uncertainty around trade tariffs, particularly in relation to the United States and China.
Cuts to hit Japan and global units
Panasonic stated that the cuts will be executed across both domestic and international operations, with 5,000 positions to be eliminated in Japan and the remaining 5,000 overseas.
These reductions will be implemented in accordance with local labour laws and regulations.
The company clarified that it will “reevaluate the numbers of organisations and personnel actually needed” as part of its ongoing review of efficiency across group companies.
The job reductions will be largely implemented during the current financial year and are aimed at addressing persistent structural challenges within the group.
These include redundancies in non-manufacturing functions and declining productivity across certain divisions.
In February, Panasonic had already signalled a management reform programme to address these issues and improve profitability by at least ¥150 billion (approximately $1 billion).
EV demand and tariffs a concern
The decision to restructure comes at a time when Panasonic, a key battery supplier to Tesla, is grappling with weakening global demand for electric vehicles (EVs).
The slowdown in EV adoption has impacted its automotive battery business, which had been one of the company’s major growth drivers in recent years.
Panasonic said it is also monitoring the evolving US trade tariff situation, although the current earnings forecast does not yet factor in any impact from these potential policy shifts.
The group’s latest financial results indicate broader macroeconomic pressures are taking a toll.
Net profit fell to ¥366 billion for the year ending March 2025, and Panasonic expects profits to dip further in the next twelve months. CEO Yuki Kusumi had earlier told Nikkei that job cuts were necessary for Panasonic to remain competitive against global peers.
He emphasised that, while the company had expanded its workforce during strong earnings periods, it now had to adjust to shifting market realities.
Panasonic’s strategy to reset its core businesses
The restructuring also reflects Panasonic’s attempts to reposition its core businesses amid changing consumer and industrial demand.
Once a global leader in consumer electronics, the company has diversified into sectors like housing, energy, and automotive technologies.
However, its performance in these sectors has faced headwinds due to weak demand, supply chain constraints, and rising operational costs.
Panasonic’s future plans centre around recalibrating its internal structures, particularly in non-manufacturing divisions, to reduce overheads and focus on more profitable areas.
The group has committed to taking both short-term and long-term measures to mitigate external risks, including trade tariffs and supply disruptions.
While the company has not disclosed specifics on which departments or roles will be most affected, the equal distribution of cuts between Japan and overseas operations signals a group-wide reassessment.
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