Panasonic Holdings Corporation has revealed its plan to reduce its global workforce by approximately 10,000 employees, which accounts for around 4 percent of its total staff.

The layoffs, which will be evenly distributed between domestic and international operations, are part of a broad restructuring initiative aimed at enhancing operational efficiency and profitability.

According to the company’s financial report, Panasonic recorded a 17.5 percent decline in net profit for the fiscal year ending March 2025, with earnings dropping to 366 billion yen (around Rp41 trillion), compared to 443 billion yen in the previous year.

Total sales also experienced a slight decrease, reaching 8.46 trillion yen (Rp963 billion). The company attributed this downturn to the global economic slowdown and weakening demand for electric vehicles, even though domestic sales of air conditioners and consumer electronics remained strong.

The restructuring strategy includes early retirement programs as well as the consolidation or shutdown of several business units, especially those involved in sales and administrative operations. Panasonic expects the total cost of this restructuring, including severance packages, to be approximately 130 billion yen (Rp14 trillion) in the current fiscal year.

Despite the current challenges, Panasonic remains optimistic about its long-term outlook. The company projects an increase in profits to 300 billion yen (Rp34 trillion) by fiscal year 2029, driven by significant management reforms and streamlined operations.

Panasonic also intends to continue investing in the production of batteries for electric vehicles and to strengthen supply partnerships with Japanese automakers such as Mazda and Subaru.

CEO Yuki Kusumi expressed regret over the job cuts but emphasized that the move is necessary for the company’s long-term improvement.

He also announced that he would return approximately 40 percent of his compensation as a gesture of personal accountability.

The layoffs at Panasonic are scheduled to begin in March 2026 and will be carried out in accordance with local labor laws in each operational region. Following the announcement, Panasonic’s stock price rose by 2 percent on the Tokyo Stock Exchange, reflecting investor confidence in the company’s restructuring strategy.