Panasonic confirmed a significant expansion of its global restructuring plan, announcing that 12,000 employees worldwide are expected to leave the company by the end of the fiscal year (March 2026).
This figure is an increase from the 10,000 job cuts initially targeted in May 2025. The company noted that the number rose because the volume of employees applying for early retirement programs in Japan exceeded their initial expectations.
Key Reasons for the Restructuring
The layoffs are part of a broader strategy to “lean out” the organization and pivot toward high-growth sectors.
- Exit from TV Manufacturing: On the same day, Panasonic announced it will stop manufacturing its own TVs and transfer sales operations for North America and Europe to the Chinese firm Skyworth in April 2026.
- Loss-Making Segments: The company is aggressively shutting down or consolidating “indirect departments” and business units that have no clear prospect of improving profit.
- Shift to Frontier Tech: Panasonic is redirecting its capital and workforce toward EV batteries (supplying Tesla, Mazda, and Subaru), AI-driven automation, and energy storage systems.
- Financial Pressure: While operating profits in some areas exceeded expectations, the company’s net profit forecast was revised downward to ¥240 billion due to the rising one-time costs of these retirement allowances (estimated at ¥180 billion).
Who is Affected?
The layoffs are split across Panasonic’s global operations, with a particular focus on non-production roles.
| Region | Impact & Tactics |
| Japan | Approximately 6,000+ positions. Primarily through voluntary early retirement programs for senior staff to rebalance the workforce toward younger talent. |
| International | Approximately 5,000 – 6,000 positions. Driven by the closure of regional sales offices and the consolidation of global IT and administrative functions. |
| Specific Roles | The cuts target sales, back-office, and “indirect” administrative departments rather than frontline manufacturing for high-growth products like batteries. |
Market Reaction
Investors have largely cheered the “determination for reform.” Following the earnings report and the expanded layoff news on February 4th, Panasonic’s stock price surged 15%—its largest single-day gain since 2014—as the market placed greater value on the company’s strategic shift than on the short-term restructuring costs.
