TOKYO: Japanese electronics giant Panasonic, which supplies batteries to Tesla, said on Friday (May 9) it will target 10,000 job cuts worldwide as part of efforts to boost profitability.
The cuts, which represent around 4 per cent of the group’s workforce of nearly 230,000, will be implemented mainly in the current financial year to March, it said.
Panasonic said it would “thoroughly review operational efficiency at each group company, mainly in sales and indirect departments”.
It will “reevaluate the numbers of organisations and personnel actually needed”, a statement said.
“This measure targets 10,000 employees (5,000 in Japan and 5,000 overseas) at consolidated companies,” and will be executed “in accordance with the labour laws, rules, and regulations of each country and region”.
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.
It said it expects to book restructuring costs of ¥130 billion yen (US$896.06 million) this business year as part of the overhaul.
The company’s restructuring seeks to achieve a return on equity – a measure of profitability – of 10 per cent by the fiscal year ending in March 2029.
Panasonic also said it will target a group adjusted operating profit of at least ¥600 billion 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.
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 per cent in “other” businesses, including its holding company. It did not expect to book any restructuring costs in its energy business.
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