LONDON (Bloomberg) - The Japanese technology conglomerate plans to shed underperforming businesses and shift its focus to new areas of growth.
Japanese tech giant Panasonic is planning to pare troubled business lines and its work force by thousands as it aims to reorient itself for a technological era no longer dominated by its traditional electronics.
In a statement on Friday, Panasonic said that it would cut about 10,000 jobs globally, or about 4 percent of employees, primarily within the fiscal year that started in April. The cuts include 5,000 jobs in Japan and 5,000 overseas. As part of its effort to bolster profitability, the company said it would “promote the termination of loss-making businesses with no prospect of improving profit.”
Founded in Osaka over a century ago, Panasonic has maintained an array of businesses from televisions and digital cameras to mobile phones and kitchen appliances. Once a leader in consumer electronics, the company over the past two decades has grappled with how to reorient its sprawling operations.
Panasonic’s profitability began to decline in the mid-2000s, culminating in significant losses in the early 2010s. Under its former president, Kazuhiro Tsuga, who assumed the role in 2012, the company cut struggling businesses such as plasma televisions. By the mid-2010s, Panasonic was no longer bleeding red ink.
Panasonic has also been working to grow its presence in software and artificial intelligence technologies. This was highlighted by its more than $7 billion acquisition of Arizona-based software company Blue Yonder, which was finalized in 2021.
On Friday, Panasonic said that it expects restructuring costs of roughly $895 million for the current fiscal year. Panasonic said that through its overhauls, it aims to improve profits by at least $1 billion.