Japanese electronics manufacturer Panasonic has is planning to reduce its global workforce by approximately 4%, equating to 10,000 jobs, reported Associated Press.

The decision forms part of the company’s strategy to streamline operations and become a more “lean” organisation.

The workforce reduction is planned to be distributed evenly between Japan and overseas, with measures including early retirement options in Japan and the closure and consolidation of various operations.

Panasonic, known for its home appliances, also has a diverse product range that includes solar panels, delivery robots, facial recognition technology, fuel cells for homes, and electric vehicle batteries for Tesla cars.

The electronics manufacturer disclosed the cuts alongside a profit decline in its latest fiscal year report.

Panasonic reported profit decline of 17.5% for the fiscal year ending in March 2025.

The profit fell to Y366bn ($2.5bn) from Y443bn in the previous fiscal year, with sales slightly down by 0.5% to Y8.46trn ($58bn).

Panasonic cited a slowing global economy and reduced EVs demand as contributing factors to its weak financial performance.

Looking ahead, the company has forecasted a profit increase of at least Y150bn ($1bn) by the fiscal year ending in March 2027, with further gains expected by March 2029.

Officials outlined that these improvements would come from management reforms, the closure of unprofitable businesses, and the development of a system that is more adaptive to business environment changes.

However, the officials cautioned that the turnaround would take time and projected a further dip in profit for the current fiscal year, with an expected profit of Y310bn ($2.1bn) on sales of Y7.8trn ($54bn).