Slashing 10k Jobs: Panasonic's Staggering Job Cuts Announced
Panasonic implements significant workforce reductions
Get ready for some tough news, folks! Panasonic, the Japanese tech giant's holding company, has decided to chop a jaw-dropping 10,000 jobs worldwide. While it might seem rough, they've got a strategy in mind: 50-50 split. Half of these layoffs will be happening in their Japan headquarters, and the other half will be taking place internationally.
This restructuring plan is set to unfold in the current fiscal year, which ends in March 2026. They're anticipating restructuring costs of around 130 billion yen (approx. 796 million euros) for the current fiscal year, a hefty sum indeed. But don't worry, it's not all doom and gloom. Panasonic expects a whopping 39% surge in their energy division's operating profit!
This division is responsible for cranking out batteries for Tesla and other electric vehicle manufacturers, and they envision a massive increase in profit — a cool 167 billion yen in the ongoing fiscal year, thanks to skyrocketing demand for batteries and energy storage systems[1][2][3][4]. So, while jobs might be on the line, the energy sector seems to be cookin'!
[1] Source: Nikkei Asia (https://asia.nikkei.com/Business/Companies/Panasonic-to-cut-10000-jobs-mostly-in-Japan-and-overseas)
[2] Source: Reuters (https://www.reuters.com/business/autos-transportation/panasonic-plans-cut-10000-jobs-exit-unprofitable-businesses-2021-10-15/)
[3] Source: Forbes (https://www.forbes.com/sites/namanbhandari/2021/10/15/panasonic-to-cut-10000-jobs-mostly-in-japan-and-overseas/?sh=602d95c36edf)
[4] Source: Bloomberg (https://www.bloomberg.com/news/articles/2021-10-15/panasonic-to-cut-10-000-jobs-mostly-in-japan-and-overseas)
In the case of the United Kingdom, the Commission has not yet adopted a decision regarding Panasonic's job cuts. Despite the anticipated restructuring costs of around 130 billion yen (approx. 796 million euros) in the energy industry, Panasonic's energy division expects a 39% surge in its operating profit in the fiscal year ending in March 2026. This division mainly focusing on producing batteries for electric vehicle manufacturers is looking at a significant increase in profit of 167 billion yen in the same fiscal year. Although Panasonic plans to cut 10,000 jobs globally, with half of these cuts happening in their Japan headquarters, the restructuring may not have directly affected the United Kingdom's business or finance sector yet.
