The Japanese electronic giant Panasonic, a battery supplier for Tesla vehicles, has announced the Cieć plan to improve profitability. The company is planning reduction of employment by almost 5 percent workforce. A total of 10,000 will lose their jobs. employees, of which 5,000 in Japan alone, and the remaining 5,000 in Panasonic factories scattered around the world.
The exemptions plan will be implemented until March 2026 after analyzing the “operational efficiency”, mainly in sales departments.
General Director with lower remuneration
The company’s general director cited by Quartz stated that he was responsible for the company’s operation. “Responsibility for management rests with me,” said Yuki Kusumi CEO at an online press conference. “I’m very embarrassed.”
According to Quartz, Kusumi currently earns 259 million yen ($ 1.79 million), and his salary will be reduced by 40 percent.
Poor results
The latest financial report of the company published in March, showed a high decrease in net profit (by 17.5 percent), and sales by 0.5 percent.
And the forecasts for 2025 are not optimistic. According to estimates, in 2025 there is a decrease in profits by 15.3 percent. and a decrease in sales by 7.8 percent. Meanwhile Panasonic intends to increase profits by at least 150 billion yen (USD 1 billion).
Strong competition and a decrease in demand
The company’s gloomy forecast does not mention the last US tariffs, but about the increase in competition from Chinese companies, such as BYD and CATL, which also deal with batteries for Tesla.
The general slowdown in the demand for electric vehicles had a negative impact on the results of Panasonic – the company said in the report.
Source: Quartz
