Panasonic, a Japanese electronics company that supplies batteries to Tesla, announced on Friday ( May 9 ) that it will target 10,000 job cuts around the world as part of efforts to boost profitability.
The team’s workforce, which is roughly 4 % of its workforce of almost 230, 000, may be cut, according to the statement, which will be implemented primarily in the current fiscal year through March.
Panasonic stated that it would” completely review operational performance at each party organization, primarily in sales and indirect sections.”
According to a speech, it did “reevaluate the numbers of organizations and personnel really needed.”
This measure is intended to employ 10, 000 workers at unified companies (5, 000 in Japan and 5, 000 outside ), and it will be carried out “in comply with the labor laws, rules, and regulations of each nation and place.”
The consolidation of sales and indirect operations, site closures, business terminations, and early retirement of Japanese employees contributed to the cuts, according to the statement.
As part of the overhaul, it said it anticipates book restructuring costs of 130 billion yen ( US$ 896.0 million ) for the current fiscal year.
By undergoing restructuring, the business aims to have a return on equity of 10 % by the fiscal year ending in March 2029, which is a measure of profitability.
Panasonic added that it will aim for a group-adjusted operating profit of at least$ 600 billion in the fiscal year to March 31, 2027, which is largely due to the restructuring of its consumer electronics business, the closure of its loss-making businesses, and the streamlining of IT investments.
About 40 % of the restructuring costs will be reinvested in “other” businesses, including its holding company, and about 50 % in its Lifestyle business, which includes home electronics and heating and ventilation systems. It did not anticipate having to report any restructuring expenses for its energy sector.