'I feel very ashamed,' CEO says
Panasonic Holdings is cutting 10,000 jobs in a bid to streamline its workforce as part of an organisational overhaul.
The company, which has over 200,000 employees, will cut 5,000 jobs in Japan and another 5,000 overseas.
The cuts will be carried out mainly in the current business year. They will come through the consolidation of sales and indirect operations, sites, business terminations, as well as early retirement, according to Reuters.
"The impact of the Group's management reform, including personnel optimisation, on business performance in FY3/26 is expected to be a loss of 130 billion yen as structural reform costs," the company said in a media release.
"This is included in the consolidated financial forecast for FY3/262 announced today (May 9, 2025), but it may change depending on the number of employees involved in the final optimisation and on other factors."
In an online press conference, Panasonic CEO Yuki Kusumi took accountability for the job cuts and said that he would return approximately 40% of his compensation.
"Responsibility for management lies with me," the CEO said, as quoted by Kyodo News. "I feel very ashamed."
Panasonic said it aims to achieve operating profit of at least 600 billion yen in FY3/27 through its current management reform. Its main target amounts for profit improvement are:
This leads to an overall 122 billion yen of profit improvement through structural reform, which also includes 70 billion yen from personnel optimisation.
"Looking ahead to FY3/27, the Company will promote group management reforms centred on structural reforms and aim to build a management structure that can handle changes in our business environments," it said.
The reforms come as Panasonic reported in its latest financial results a slight decline in net sales for fiscal 2025, which ended on March 31, 2025.
Total sales amounted to 8.46 trillion yen, a decrease of 0.5% from the previous year. However, the company saw an 18.2% increase in operating profit, reaching 426.5 billion yen.
The company also announced its consolidated financial forecast for fiscal 2026, with net sales expected to decrease. However, the company anticipates an increase in adjusted operating profit, driven by growth in its Energy segment.
"Adjusted operating profit is expected to increase due to a profit increase for Lifestyle, Industry and Energy," it said.
"Meanwhile, operating profit, profit before income taxes and net profit attributable to Panasonic Holdings Corporation stockholders are expected to decrease with restructuring expenses of 130 billion yen factored into other income (expenses) in relation with the Panasonic Group Management Reform."
