Japanese tech company Panasonic cuts 4% of its global workforce as profits falter

TOKYO (AP) - Panasonic will slash its global workforce by 10,000 people, half in Japan and half overseas, to become a more efficient, "lean" company, the Japanese manufacturer said Friday.

The job cuts, amounting to about 4% of its 230,000 workers, will include early retirement offers in Japan and closures and consolidation of various operations, according to the Osaka-based maker of home appliances, such as washing machines and refrigerators.

Panasonic also makes solar panels, delivery robots, facial recognition technology, fuel cells for homes and EV batteries for Tesla cars.

Also Friday, Panasonic reported a 17.5% drop in profit for the fiscal year through March at 366 billion yen ($2.5 billion), down from 443 billion yen in the previous fiscal year. It sales totaled 8.46 trillion yen ($58 billion), down 0.5% year-on-year.

The company said the slowing global economy and weaker demand for electric vehicles were a factor behind its weak results. But sales of air-conditioners and consumer electronics products held up in Japan, it said.

The company’s chief executive, Yuki Kusumi, told reporters his heart felt heavy in announcing the job cuts. Panasonic did not mention U.S. President Donald Trump's tariff policies as a factor behind its drop in profit.

Panasonic forecast that its profit will improve by at least 150 billion yen ($1 billion) by the fiscal year through March 2027, and by 300 billion yen ($2.1 billion) by the fiscal year through March 2029.

That will be achieved through management reform, closure of unprofitable businesses and building a system that's more responsive to changes in the business environment, officials told reporters.

But the turnaround will take time and profit will slip further in this fiscal year. For the fiscal year through March 2026, Panasonic is projecting a 310 billion yen ($2.1 billion) profit on 7.8 trillion yen ($54 billion) sales.

Panasonic said it remains bullish about EV batteries and plans to supply Japanese automakers Mazda Motor Corp. and Subaru Corp. in new strategic partnerships.