Panasonic to Lay Off 10,000 Employees Globally Amid Profit Pressure and Indo-Pak Tensions

As geopolitical tensions between India and Pakistan continue to escalate, Japanese electronics giant Panasonic has announced a major global workforce reduction. The company revealed plans on Friday to lay off 10,000 employees worldwide, impacting approximately 4% of its 230,000-strong workforce. The decision is part of a broader cost-cutting initiative aimed at improving profitability.

Global and Domestic Job Cuts Planned

According to Panasonic, around 5,000 jobs will be cut in Japan, with the remaining 5,000 layoffs occurring across its international operations. The company emphasized that it would comply with local labor laws and regulations in every country where the layoffs take place.

Operational Review Underway

Panasonic stated that it would begin reviewing all group companies, with a focus on sales and indirect departments. As part of this restructuring, the company will also reassess the size and structure of its workforce.

The move comes as part of a management reform program introduced in February to address long-standing structural inefficiencies within the conglomerate. The company, known for producing a wide range of consumer electronics and home appliances, is also a major battery supplier for Tesla and operates in the automotive, housing, and energy sectors.

Profitability Under Pressure

In its full-year earnings report released Friday, Panasonic projected a 15% decline in profits and an 8% drop in sales for the current fiscal year. As part of its reform strategy, the company is aiming to boost profits by at least 150 billion yen (approximately $1 billion).

In an interview with Japan's Nikkei in April, Panasonic Holdings CEO Yuki Kusumi said, “Layoffs are necessary to achieve stronger performance compared to our competitors.”