Panasonic's Strategic Workforce Reduction Amidst Global Challenges

Panasonic plans to cut 10,000 jobs globally, split between Japan and international sites, aiming for enhanced efficiency. The company attributed profit drops to a global economic slowdown and reduced electric vehicle demand. Efforts to stabilize include closing unprofitable businesses and forming new partnerships for EV battery supplies.

In a significant strategic move, Panasonic announced plans to cut its global workforce by 10,000, aiming to streamline operations. This workforce reduction will involve early retirements in Japan and consolidations overseas, impacting about 4% of their 230,000 employees.

The job cuts were announced alongside a financial report revealing a 17.5% drop in profits for the fiscal year ending March 2023. The decline in profit was attributed to a slowing global economy and weaker demand for electric vehicles, although consumer electronics sales in Japan remained stable.

Panasonic remains optimistic about future growth, forecasting improved profits, and continues to prioritize its EV battery segment, partnering with Mazda and Subaru to strengthen its position in the automotive sector while planning ongoing management reforms to navigate market challenges.

(With inputs from agencies.)