- 10,000 positions eliminated worldwide through early retirements and facility consolidations
- Annual profits fell 17.5% to $2.5B amid slowing EV demand
- New battery partnerships with Mazda and Subaru announced
- 3-year plan targets $2.1B profit recovery through operational reforms
Japan's manufacturing landscape faces upheaval as Panasonic implements its largest restructuring effort in a decade. The Osaka-based conglomerate will eliminate nearly 10,000 positions globally, representing 4% of its workforce, through a combination of early retirement packages and strategic facility closures. This decisive action follows a concerning 17.5% year-over-year profit decline, with annual earnings plummeting to $2.5 billion.
Industry analysts identify three critical factors shaping Panasonic's strategy:
- Global EV sales growth slowed to 12% in Q1 2024 compared to 35% in 2023
- Japan's aging workforce increases pressure for automation investments
- North American tariff policies create supply chain uncertainties
A regional case study reveals contrasting performance within Japanese markets. While international operations struggled, domestic sales of energy-efficient appliances surged 8% year-over-year. This growth aligns with Japan's national sustainability initiative, which offers consumers tax rebates for eco-friendly home upgrades.
CEO Yuki Kusumi emphasized strategic reorientation during Thursday's earnings call: Our $1.2 billion investment in solid-state battery research positions Panasonic to lead the next generation of EV power systems. The partnerships with Mazda and Subaru ensure stable demand through 2030.
Financial projections suggest a challenging transition period, with current fiscal year profits expected to dip below $2 billion before recovering. The company plans to offset declining consumer electronics revenue through expansion in smart city infrastructure projects and industrial automation solutions.