Panasonic slashes thousands of jobs in a bid for growth
Panasonic reveals significant workforce reduction plans
The mighty Panasonic, a Japanese electronics conglomerate, is reducing its workforce by a hefty 10,000 employees. This chopping block implications mainly target employees within the company's international branches, as announced by Panasonic Holdings Corporation on a Friday manifesto.
Half of these job reductions are set to take place in Japan, with the other half occurring globally. In the current fiscal year, the company anticipates incurring restructuring costs of around 130 billion yen (approximately 796 million euros).
While trimming the fat, Panasonic expectantly projects a 39% surge in its energy division's operating profit to 167 billion yen in the current fiscal year. This division manufactures batteries for electric vehicles and other automakers, beefing up due to heightened need for batteries and energy storage systems.
Sources: ntv.de, rts
Enrichment Data- Scope of job cuts: Panasonic's job reductions aim to axe approximately 4% of its global workforce of 230,000 employees.- Balance of job cuts: The job cuts will be equally distributed, with 5,000 positions slashed in Japan and 5,000 overseas. This includes early retirement offers in Japan and the closure and consolidation of multiple global operations [1][4].- Motivation: These decisions are geared towards streamlining operations, bolstering profitability, and addressing a 17.5% decline in profit from the previous fiscal year [1][3].
In the case of the United Kingdom, the Commission has not yet adopted a decision regarding Panasonic's job cuts, but the company's financial challenges might induce adjustments in the UK's business and technology sectors. The equal distribution of Panasonic's job cuts, with 5,000 positions slashed overseas, could potentially impact these sectors, especially considering the closure and consolidation of multiple global operations.
