Panasonic Holdings plans to lay off 10,000 workers around the globe as part of a corporate restructuring, the electronics maker announced on Friday.
The company aims to cut 5,000 workers in its home country of Japan, as well as 5,000 workers at other locations around the world. Panasonic will also shutter some loss-making businesses and sites as part of the cuts.
The company currently operates one lithium battery production site in Sparks, Nevada, where it supplies Tesla. Panasonic also has an office in Reno, Nevada and is readying to open a new $4 billion battery factory in De Soto, Kansas this spring.
Panasonic will incur roughly $879 million (130 billion yen) in structural reform costs from the job cuts. Layoffs will largely impact sales and "indirect departments," according to the company's announcement.
The company is focused on streamlining operations at its headquarters and in its global IT operations, as well as in its consumer electronics segment.
The electronics manufacturer is aiming to raise profits by 150 billion compared to the fiscal year ending March 31, 2025.
The moves are part of Panasonic's plan to mitigate slowing demand across multiple markets. The company's sales for fiscal year 2025, which ended in March, were down 0.5% year over year to 8.5 trillion yen, with particular slowdowns in its auto segment.
For the current fiscal year, Panasonic forecasts a roughly 13% drop in operating profit down to 370 billion yen. The forecast does not take into account any impact from the Trump administration's tariff policies.
