Kadomo, May 9:┬аJapan-based┬аPanasonic Holdings plans to cut more than 4% of its workforce to boost its profit and reduce costs. The Panasonic layoffs will impact around 10,000┬аemployees. The┬аelectronics products giant will significantly┬аreduce its headcount┬аas part of a business restructuring to help streamline its operations and move away from areas that are no longer helping in the┬аgrowth.

Panasonic is┬аone of the key suppliers of lithium-ion batteries to┬аElon Musk's Tesla Inc., amid┬аcost-cutting┬аmeasures. The layoffs will target 5,000 employees in Japan and 5,000 employees┬аfrom the global┬аworkforce, according to a┬аreport┬аby┬аBloomberg. The Japanese electronics┬аgiant┬аwill likely see USD 895 million in restructuring charges.┬аCrowdStrike Layoffs: US-Based Cybersecurity Company To Reduce 5% of Global Workforce, 500 Employees, Will Hire in Key Areas by 2026.

The┬аreport said that Panasonic┬аCEO┬аYuki Kusumi said the layoffs┬аwould prepare the company┬аfor the next decade or two. He said, "I'm┬аtruly sorry" and explained that if Panasonic layoffs are not implemented to┬аcut costs, the┬аcompany would not be able to "chase the growth" again.┬аBloomberg┬аhighlighted that the company would┬аcontinue building┬аits EV battery and home appliance operations; however would┬аalso┬аventure into some other areas like data centre power sources,┬аenergy-efficient power generation and storage.┬а

Panasonic reportedly has around 2,30,000 total workforce, of which it will let go of 10,000 employees to cut costs and focus on the growth of the company┬аas a part of its┬аrestructuring efforts. The reports have said that the Panasonic layoff round would be┬аimplemented.┬аGoogle Layoffs Continue: Tech Giant Lays Off 200 Employees From Its Global Business Unit Working in Sales and Partnership.

Panasonic Financial Performance┬а

Panasonic shares rose 5% from the beginning of 2025; however, they declined amid the fear of EV sales slowing down and the potential impact of┬аDonald Trump's US┬аtariffs.┬аPanasonic forecast a net income of 310 billion yen (around USD 2.13 billion) for the current fiscal year, below analyst expectations of 357 billion yen┬а(around USD 2.46 billion), citing restructuring costs and not yet accounting for potential US tariffs. Despite this, the firm saw a 74% increase in Q4 net income, however vehicle energy sales witnessed continuous decline.

(The above story first appeared on LatestLY on May 09, 2025 08:02 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).