The Panasonic booth is shown during the 2020 CES in Las Vegas, Nevada, U.S. January 7, 2020. REUTERS/Steve Marcus/File Photo
- Panasonic to cut 10,000 jobs—half in Japan, half overseas—and book ¥130 billion ($896 million) in restructuring costs this fiscal year as part of a major overhaul.
- The cuts target sales, indirect operations, and some business terminations; nearly half of the costs will hit its Lifestyle division.
- Panasonic aims for ¥600 billion adjusted operating profit by FY2027 and 10% return on equity by FY2029.
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TOKYO (Reuters) – Panasonic Holdings said on Friday it will cut 10,000 staff and expects to book restructuring costs of 130 billion yen ($896.06 million) this business year as part of an overhaul of the company.
The electronics manufacturer will make the staff cuts mainly in the current business year, with half of them planned for Japan and the other half for overseas, it said in a statement.
The cuts will come through consolidation of sales and indirect operations as well as sites, business terminations and employees in Japan taking early retirement, it said.
Panasonic has around 228,000 staff worldwide, according to its website.
The company’s restructuring aims to improve group profitability and seeks to achieve a return on equity – a measure of profitability – of 10% by the fiscal year ending in March 2029.
Panasonic Said It Will Target Group Adjusted Operating Profit
Panasonic also said it will target a group adjusted operating profit of at least 600 billion yen in the fiscal year to March 31, 2027, partly due to a revamp of its consumer electronics business, termination of loss-making businesses and streamlining of IT investments.
The company said it will review the operational efficiency of its group companies, particularly in sales and back-office divisions, in an update of its overhaul announced in February.
Almost half of the restructuring costs will be booked in its Lifestyle business, which includes home electronics and heating and ventilation systems, and another 40% in “other” businesses, including its holding company. It did not expect to book any restructuring costs in its energy business.
Panasonic also forecast a 39% increase in operating profit at its electric vehicle battery-making energy business this fiscal year to March 31, 2026, upgrading it to 167 billion yen on expected higher battery and energy storage system sales.
The energy business, which makes batteries for Tesla and other automakers, made 120.2 billion yen in the year that ended in March, missing its own 124 billion yen forecast.
For its business as a whole, Panasonic forecast a 13% decline in operating profit for this business year to 370 billion yen.
($1 = 145.0800 yen)
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(Reporting by Daniel Leussink; Editing by Muralikumar Anantharaman, Shri Navaratnam and Jane Merriman)
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