May 9 (UPI) — Panasonic revealed during an online press conference Friday that it plans to cut 10,000 jobs from fiscal 2025 to fiscal 2026. Half will be cut in Japan and half overseas.
Panasonic Holdings President Yuki Kusumi cited “extremely high” costs relative to similar companies and said the big job cuts are necessary for company profit growth.
The company took an $895 million restructuring charge and forecasts a 15.3% profits decline in the year ending next March.
The job cuts will be made to transform and streamline unprofitable operations.
Kusumi said he would also return roughly 40% of his personal compensation amid the job cuts.
“Responsibility for management lies with me,” he said. “I feel very ashamed.”
“The Company will thoroughly review operational efficiency at each Group company, mainly in sales and indirect departments, and reevaluate the numbers of organizations and personnel actually needed,” Panasonic said in a statement.
Unprofitable operations will be terminated along with “the integration and closing of sites.”
The 10,000 job cuts are being carried out to optimize personnel on a global scale, according to Panasonic’s statement.
Panasonic said profit is expected to improve by $1.07 billion dollars as a result of the job cuts and restructuring.
“This measure targets 10,000 employees (5,000 in Japan and 5,000 overseas) at consolidated companies, and it will be implemented mainly in FY3/26, in accordance with the labor laws, rules, and regulations of each country and region,” Panasonic’s statement said.