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The future of two US factories is under threat after Panasonic announced plans to slash 10,000 positions globally and shut down struggling business units as it seeks to reverse slowing sales and improve profitability.
The move is part of a sweeping corporate restructuring unveiled by the Japanese electronics group on Friday.
While Panasonic continues to invest in strategic growth areas, such as its new $4 billion battery manufacturing facility in De Soto, Kansas, set to open this spring, it is simultaneously tightening operations in core consumer electronics and headquarters functions
The electronics giant currently runs a battery production plant in Sparks, Nevada, supplying Tesla, and maintains an office in nearby Reno.
Its latest earnings forecast anticipates a 13% drop in operating profit to 370 billion yen for the current fiscal year. The projection excludes any potential impacts from the Trump administration’s tariff measures, signaling caution amid ongoing global trade uncertainty.
Half of the layoffs will come from its domestic workforce in Japan, with the remaining 5,000 roles eliminated across international operations.
Roles in sales and indirect departments will be the most affected, reflecting a broader plan to streamline administrative functions and global IT systems. Panasonic also said it will close down loss-making sites as part of the plan.
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The cost of the restructuring is expected to reach 130 billion yen, or approximately $879 million. The company is targeting a 150 billion yen increase in profits by the end of the 2025 fiscal year.
Responding to softening demand
The firm's decision follows a modest decline in group sales. For the fiscal year ending March 2025, the electronics giant reported a 0.5% year-on-year dip in revenue to 8.5 trillion yen. Its automotive segment was particularly affected by weakened demand, contributing to an overall drag on performance.
HR strategy implications
As indirect departments face downsizing and automation increases in administrative roles, organizations must prepare to reskill or redeploy displaced employees where possible.
Panasonic’s actions are part of a broader industry trend of balancing future investment with immediate cost control, exiting underperforming areas while reinforcing high-growth segments like energy storage.
The restructuring marks one of the most significant job reductions in the firm's recent history. While the company has not provided a timeline for the layoffs, the impact on both domestic and international operations will be seen throughout the year and the implications for individual business will become clearer.
