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Panasonic Announces The Layoff Of 10,000 Employees By The End Of The Fiscal Year. Understand What Led The Japanese Multinational To Make Mass Layoffs In Various Countries.
Amid a global landscape of corporate restructurings, Panasonic recently announced a drastic decision that is resonating worldwide: the mass layoff of approximately 10,000 employees by the end of 2025. This measure is part of a strategic plan of the Japanese technology company to increase operational efficiency and reduce costs in light of the slowdown in some key sectors, such as electric vehicle batteries and consumer electronics.
The announcement of mass layoffs has had a strong impact on the market and raised alarms in various countries where the multinational operates production units and research centers. The expectation is that the cuts will affect employees in various regions of Asia, Europe, and the Americas, including factories and offices with significant representation.
In this article, you will find details about Panasonic’s decision, the reasons behind the restructuring, the most affected sectors, and which countries may suffer the greatest impacts from the layoffs. This measure reinforces a trend observed among global technology giants, pressured by changes in consumption, cost inflation, and energy transition.
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Panasonic Speaks Out About Mass Layoffs
Thousands of layoffs at Panasonic were announced by the company according to information from the Business Insider portal. In fact, the goal of the Japanese company is to lay off 10,000 employees this fiscal year and also intends to enhance its efficiency. Thus, the reductions in personnel are equivalent to about 4% of the brand’s global workforce.
Furthermore, the Japanese electronics manufacturer, which supplies batteries to Tesla through its subsidiary Panasonic Energy, plans to cut 5,000 jobs in Japan and 5,000 abroad. Therefore, this figure represents 4% of its global workforce, which totals nearly 230,000 employees.
In an official statement released last week, Panasonic states that it plans to thoroughly review its operational efficiency, particularly concerning sales and indirect departments. Additionally, it aims to reassess the number of organizations and personnel truly needed. The statement adds that, through these measures, the company will optimize its personnel on a global scale.
Thus, the layoff of 10,000 employees is expected to occur in this fiscal year of 2025, which ends in March of the following year, according to the labor laws, regulations, and rules of each country and region. Additionally, the intention is for the mass layoffs to generate a cost of nearly $900 million.
However, despite the bad news for workers, the stocks of the Japanese company rose and closed 2% higher in Tokyo. The company’s restructuring aims to improve the group’s profitability and seeks to achieve a return on equity, a measure of profitability, of 10% by the fiscal year ending in March 2029.
Panasonic Aims To Achieve An Operational Profit Of 600 Billion Yen
Panasonic also stated that, with the layoff of 10,000 employees, it aims for an adjusted group operating profit of at least 600 billion yen in the fiscal year ending March 31, 2027, partly due to a reorganization of its consumer electronics business, streamlining IT investments, and shutting down unprofitable businesses.
The Japanese company also forecast a 39% increase in operating profit from its energy business for electric vehicle battery production in this fiscal year until March 31, 2026, raising the figure to 167 billion yen with the expectation of higher sales of energy storage systems and batteries.
The energy business, responsible for producing batteries for screens and other automakers, recorded a revenue of 120.2 billion yen in the year ending in March, below its own forecast of 124 billion yen. For its overall business, the company projected a 13% decline in operating profit for this fiscal year, to 370 billion yen.
Company Seeks To Reduce Dependence On The Chinese Market
Tariffs and the U.S.-China trade war have made the global economic outlook more uncertain in 2025. Thus, in January, Panasonic Energy stated that it seeks to reduce its dependence on China for electric vehicle batteries.
According to Allan Swan, president of Panasonic Energy North America, at the time, the company has some Chinese supply, but not much. And it plans to eliminate any as it moves forward.
Back in 2022, the company had already implemented the 4-day workweek recommended by the Japanese government, reducing the number of employees in the country who fell ill and even died due to overwork. CEO Yuki Kusimi stated to investors at the time that the company should support the well-being of its employees.
It is important to highlight that the era of mass layoffs has arrived, and several multinationals are following in Panasonic’s footsteps. An example of this is Google, which is laying off 200 people in its sales and partnerships department as part of a broader cost-cutting initiative.
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