Panasonic Cuts Profit Estimates on Restructuring Costs

Osaka, Feb. 4 (Jiji Press)–Panasonic Holdings Corp. said Wednesday that it has lowered its consolidated operating and net profit estimates for the year ending in March, due to rising restructuring costs. The Japanese company’s operating profit is now projected at 290 billion yen, down from its previous estimate of 320 billion yen. Net profit is forecast at 240 billion yen, down from 260 billion yen. The number of workers who have applied for an early retirement program has risen to 12,000, against its plan announced in May last year to cut 10,000 jobs in Japan and overseas, leading to higher costs for retirement allowances. The company previously lowered its earnings forecasts in October last year. Panasonic is reducing its workforce and consolidating its operations, with its restructuring costs growing to 180 billion yen, up 30 billion yen from its previous projection. “We’ve reached a certain point in reducing the number of employees,” Panasonic Group CFO Akira Waniko said at an online press conference. In April-December 2025, Panasonic’s group net profit fell 56.6 pct from a year before to 125.2 billion yen. Its sales declined 8.1 pct to 5,883.7 billion yen, and operating profit slipped 54.7 pct to 157.7 billion yen, reflecting weak sales of in-vehicle batteries amid a slump in the U.S. electric vehicle market. END [Copyright The Jiji Press, Ltd.]