Kadomo, May 9: Japan-based Panasonic 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 employees. The electronics products giant will significantly reduce its headcount as part of a business restructuring to help streamline its operations and move away from areas that are no longer helping in the growth.

Panasonic is one of the key suppliers of lithium-ion batteries to Elon Musk's Tesla Inc., amid cost-cutting measures. The layoffs will target 5,000 employees in Japan and 5,000 employees from the global workforce, according to a report by Bloomberg. The Japanese electronics giant will likely see USD 895 million in restructuring charges. CrowdStrike Layoffs: US-Based Cybersecurity Company To Reduce 5% of Global Workforce, 500 Employees, Will Hire in Key Areas by 2026.

The report said that Panasonic CEO Yuki Kusumi said the layoffs would prepare the company for the next decade or two. He said, "I'm truly sorry" and explained that if Panasonic layoffs are not implemented to cut costs, the company would not be able to "chase the growth" again. Bloomberg highlighted that the company would continue building its EV battery and home appliance operations; however would also venture into some other areas like data centre power sources, energy-efficient power generation and storage. 

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 as a part of its restructuring efforts. The reports have said that the Panasonic layoff round would be implemented. Google Layoffs Continue: Tech Giant Lays Off 200 Employees From Its Global Business Unit Working in Sales and Partnership.

Panasonic Financial Performance 

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 Donald Trump's US tariffs. Panasonic 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 (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).