Panasonic to Slash 10,000 Jobs Amid Major Restructuring Effort

 

 

In a bold move to realign its global operations, Panasonic Holdings has announced plans to lay off 10,000 employees worldwide as part of a sweeping restructuring initiative in 2025. The layoffs—split evenly between 5,000 jobs in Japan and 5,000 overseas—come amid mounting financial pressures and a strategic push to streamline operations and improve profitability.

This Panasonic job cut 2025 plan will cost the company approximately 130 billion yen (USD 895 million) and is expected to significantly reshape its workforce and operational footprint. Some employees will be offered early retirement packages, as Panasonic aims to manage the transition as smoothly as possible.

President Yuki Kusumi, in a candid virtual press conference, took full responsibility for the situation, stating, “Responsibility for management lies with me. I feel very ashamed.” As a gesture of accountability, Kusumi also announced he would return 40% of his compensation.

The announcement follows the company’s recent earnings report, which revealed a 17.5% decline in net profit for the fiscal year ending March. With Panasonic’s financial outlook remaining weak, the company anticipates further profit declines in the current fiscal year, citing global market uncertainties and internal inefficiencies.

This restructuring is part of Panasonic's broader strategy to refocus on its core business segments, such as automotive batteries, industrial solutions, and smart manufacturing, while shedding underperforming units. As the global electronics and appliance market evolves, Panasonic’s bold overhaul reflects the tough decisions legacy companies must make to stay competitive in the tech-driven economy of 2025.