[News] Panasonic Reportedly Offering Early Retirement in Consumer Electronics in Oct.; Battery Unit Safe

Struggling from underperforming businesses led by TV and industrial devices, Japanese tech giant Panasonic Holdings, according to Nikkei, plans to begin accepting early retirement applications in October for staff at its consumer electronics and air conditioning division Panasonic Corp.

The move is part of a broader effort to reduce the group’s workforce by 10,000, the report suggests. As Reuters reported in early May, Panasonic expects these workforce reductions to generate restructuring costs of 130 billion yen ($896 million) in the current business year.

As per Nikkei, employees eligible for early retirement are mainly aged 40 to 59 with at least five years of service, along with rehired staff up to 64. Panasonic aims to complete the workforce reductions in Japan within this year, the report notes.

As of March, Panasonic Corp. employed 87,900 people, reportedly accounting for over 40% of Panasonic Holdings’ total workforce. As noted by Nikkei, early retirement offers will not extend to battery unit Panasonic Energy or system developer Panasonic Connect, as their current staffing levels are considered adequate.

The move might not come unexpectedly, as The Asahi Shimbun reported in February that Panasonic is weighing the sale or downsizing of its struggling television business and other low-profit divisions, such as kitchen appliances, industrial devices, and mechatronics, which face weak profitability and uncertain growth prospects.

According to Reuters, Panasonic, which employs roughly 228,000 people worldwide, is overhauling its operations to boost group profitability. The company aims to achieve a return on equity of 10% by the fiscal year ending March 2029, the report added.

As part of the plan, Panasonic expects a group adjusted operating profit of at least 600 billion yen in the fiscal year ending March 31, 2027.

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(Photo credit: Panasonic)