New Delhi: As geopolitical tensions between India and Pakistan continue to make global headlines, a major corporate shake-up has emerged from Japan. Panasonic, a Japanese electronics giant and key battery supplier to Tesla has announced layoffs of 10,000 employees both domestically and internationally.
The company has decided to cut about 4 per cent of its global workforce. This is a significant move given that the company employs around 230000 people. The decision has been made as part of efforts to boost profitability.
Company Plans Major Internal Review
Panasonic is getting ready to review all its group companies, with a special focus on sales and support departments. As part of this process, it will also reassess its organizational structure and staffing levels. The company plans to cut 5,000 jobs in Japan and another 5,000 overseas. However, it has assured that all layoffs will be carried out in line with labor laws and regulations in each country.
Reason Behind the Massive Layoff
Panasonic’s decision to cut jobs comes as part of its strategy to stay ahead in a competitive market. “Layoffs are necessary to achieve better performance than other companies,” Panasonic Holdings CEO Yuki Kusumi said in an interview with Japan’s Nikkei newspaper in April.
Panasonic Plans Cost Cuts as Profits Fall
Panasonic’s latest move is part of a broader management overhaul to adapt to major shifts in the global business landscape, according to a report by CCTV. Along with job cuts, the company plans to exit or shut down unprofitable businesses and streamline support operations. As per its fiscal 2024 earnings report, Panasonic’s revenue stood at 8.46 trillion yen (around 54 billion U.S. dollars), a slight dip of 0.5 per cent from the previous year. Meanwhile, net profit fell sharply by 17.5 per cent to 366.2 billion yen (about 2.53 billion U.S. dollars).