Tesla Supplier Panasonic To Slash 10,000 Jobs, Take $895 Million Hit

Panasonic Holdings Corp (OTC:PCRFF) expects to book 130 billion Japanese Yen ($895 million) in restructuring charges for fiscal 2026 as it intensifies its focus on its core competencies.

In the current fiscal year, the company plans to downsize its employee strength by 10,000, including 5,000 employees in Japan and 5,000 overseas, Bloomberg reported on Friday.

The Tesla Inc (NASDAQ:TSLA) battery supplier’s topline declined 0.5% in fiscal 2025 to 8.46 trillion yen. Operating profit increased by 18% to 426.5 billion yen, while net profit declined 17.4% to 384.4 billion yen.

Also Read: Tesla’s China Sales Slide Again in April, Extending 7-Month Slump as Rivals Gain Ground

Panasonic expects fiscal 2026 revenue of 7.80 trillion yen and net profit of 310.0 billion yen. The guidance does not include the impact of U.S. tariffs.

Panasonic expects to pay an annual dividend of 48 yen per share for fiscal 2025, which includes the interim dividend of 20 yen per share paid on December 2, 2024, and a year-end dividend of 28 yen per share. This is an increase of 13 yen per share compared to fiscal 2024.

In February, Panasonic announced it would target a return on equity of 10% or more in the year ending March 2029. It shared plans to streamline its operations, trim non-growth areas such as industrial devices and TVs, and speed up a pivot through artificial intelligence.

As of September 2024, Panasonic had about 228,420 employees worldwide.

Panasonic reportedly aims to reduce its reliance on China for electric vehicle battery supplies in the U.S. in response to President Trump’s tariffs on Chinese imports.

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