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Photo = Yonhap news |
[Alpha Biz= Kim Jisun] Panasonic Holdings has announced a sweeping restructuring plan that includes cutting approximately 10,000 jobs worldwide, as the company seeks to improve profitability and enhance operational efficiency amid intensifying competition in the electronics industry.
According to Japanese media outlets including the Yomiuri Shimbun on May 10, the planned workforce reduction accounts for less than 5% of Panasonic’s global headcount. The layoffs are expected to be split evenly, with around 5,000 jobs cut in Japan and another 5,000 overseas.
Industry sources estimate the total cost of the restructuring—including personnel reductions—will amount to approximately 130 billion yen (about KRW 1.25 trillion or USD 850 million).
The restructuring aims to reduce fixed costs and improve profitability, particularly by streamlining back-office operations such as human resources, administration, and accounting. Analysts have noted inefficiencies stemming from overlapping roles following Panasonic’s previous acquisitions of companies like Sanyo Electric and Matsushita Electric.
Panasonic President Yuki Kusumi stated, “Compared to our peers in the industry, our cost structure—particularly labor and advertising expenses—is disproportionately high, which undermines profitability. Without fundamental changes to our management structure, sustainable growth will not be possible.”
As part of the reform effort, Kusumi has also pledged to return 40% of his executive compensation.
While industry rivals such as Hitachi and Sony posted operating profit margins around 10% for the fiscal year ending March 2024, Panasonic’s margin stood at just 5%. In addition to workforce reductions, the company plans to exit unprofitable business segments and consolidate or shut down certain operational bases.
As of March 2024, Panasonic employed approximately 210,000 people globally.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
