Panasonic to lay off 10,000 employees

PANASONIC HOLDINGS IS slashing headcount by 10,000, or more than 4%, part of a push to cull non-growth operations and boost profitability.

- BLOOMBERG

The supplier of lithium-ion batteries to Tesla said the job cuts target 5,000 employees in Japan and 5,000 overseas and would take place mostly in the current fiscal year. The company expects about ¥130 billion ($895 million) in restructuring charges in the year to March.

The personnel cuts are necessary to prepare the company for the next decade or two, Panasonic Chief Executive Officer Yuki Kusumi said during an earnings call.

"I am truly sorry," he said. "(But) if we don't make drastic cuts to our fixed cost structure, we won't be able to chase growth again."