Panasonic to reduce 10,000 jobs, wait $ 900 million in restructuring costs

Tokyo (Reuters) – Panasonic Holdings said on Friday that it will reduce 10,000 employees and plan to reserve restructuring costs of 130 billion yen ($ 896.06 million) this year as part of a company review.

The electronic maker will cause the staff to cut mainly in the current exercise, with the half planned for Japan and the other half for abroad, as he said in a statement.

The cuts will occur through the consolidation of indirect sales and operations, as well as places, business endings and employees of Japan who retire in advance.

Panasonic has around 228,000 employees worldwide, according to its website.

The restructuring of the company aims to improve the profitability of the group and aims to achieve a 10% equity (a measure of profitability) in the final financial year ending in March 2029.

Panasonic also said that it would be addressed to a group of exploitation adjusted to a group of at least 600 billion yen during the fiscal year until March 31, 2027, in part due to a renewal of their consumer electronics business, completion of companies that make losses and rationalization of computer investments.

The company said it would review the operational efficiency of group companies, especially in the sales and back-office divisions, in an update of its review announced in February.

Almost half of the restructuring costs will be reserved in their lifestyle business, which includes domestic electronics and heating and ventilation systems, and another 40% in “other” companies, including their holding. He did not expect to reserve any cost of restructuring in his energy business.

Panasonic also provided for an increase of 39% in the operating benefit in its electricity battery business business this year until March 31, 2026, updating it to 167 billion yen in planned sales of battery and energy storage systems.

The energy business, which causes batteries for Tesla and other automobile manufacturers, made 120.2 billion yen a year ending in March, and lacking their own forecast of 124 billion yen.

For his general business, Panasonic foreseen a 13% decrease in operating profit for this commercial year to 370 million Yen.

($ 1 = 145,0800 yen)

(Report by Daniel Leussink; Edition of Muralikumar Anantharan, Shri Navaratnam and Jane Merriman)