The move aims to improve operational efficiency in the context of slowing growth of electric vehicles and declining air conditioning profits.
According to the release, the restructuring will affect 5,000 employees in Japan and 5,000 overseas. Panasonic estimates it will spend about $900 million on the cut.
We will carefully review the operational performance of each company in the Group, mainly in the business and indirect departments, and re-evaluate the number of organizations and personnel that are really necessary, said Panasonic.
In parallel with streamlining personnel and restructuring the consumer electronics segment, Panasonic aims to achieve a minimum adjusted operating profit of about 4 billion USD in the fiscal year ending March 31, 2027.
Panasonic currently manufactures a variety of products, from electric vehicle batteries for Tesla to consumer appliances such as cameras and TVs. Last year, the company brought TVs back to the US market after a decade of absence, but also said it was ready to withdraw from this segment if sales continued to be unsatisfactory.
