New Delhi ,Bad Luck Strikes Employees!, Geophysical tension between India and Pakistan remains global headlines, while a major corporate change has come out from Japan. Japanese electronics giants and Tesla have been announced by Panasonic, the leading supplier of battery, a trimming 10,000 employees at the domestic and international level.
The company has decided to cut about 4 percent of its global workforce. This is an important step, as around 230000 people are employed in the company. This decision has been taken under efforts to increase profitability.
Bad Luck Strikes Employees! Company is planning major internal reviews
Panasonic is preparing to review all its group companies, which will pay special attention to the sale and support departments. As part of this process, it will also revaluate its organizational structure and staffing levels. The company plans to cut 5,000 jobs in Japan and 5,000 jobs abroad. However, it has assured that all trimming will be done in each country in accordance with labor laws and regulations.
The reason behind the large scale trimming
The decision to cut jobs by Panasonic has been taken under the strategy of further stay in the competitive market. In an interview given to Nikkei newspaper of Japan in April, Panasonic Holdings CEO Yuki Kusumi said, “It is necessary to trim to achieve better performance than other companies.”
Panasonic planned cost cuts due to a decline in profits
According to a CCTV report, the latest steps of Panasonic are part of comprehensive management change to adapt to major changes in the global trade scenario. Along with the job cuts, the company is planning to get out of the unprofitable businesses or to close the support and streamline support operations. According to its financial year 2024 income report, Panasonic’s revenue was 8.46 trillion yen (about 54 billion US $), which is a slight decline of 0.5 percent compared to the previous year. Meanwhile, the net profit fell by 17.5 percent to 366.2 billion yen (US $ 2.53 billion).
