Latest news with #Kusumi
Miami Herald
15-05-2025
- Automotive
- Miami Herald
Major tech company CEO reveals surprising upside of tariffs
The on-again, off-again tariff game continues. May 12 saw a major, yet temporary, relief for many industries, but especially technology. That's when the U.S. and China agreed to temporarily decrease tariffs in an effort to diminish the trade war between them. Under the new deal, the U.S. will lower its average tariffs on Chinese products from 145% to 30%, while China will decrease its duties on American goods from 125% to 10%, according to the joint statement. Related: Apple iPhone decision will upset customers, appease White House The agreement couldn't have come at a better time, considering that many companies have been building up supplies as a way to prepare for the upcoming high tariffs. In the first quarter of 2025, U.S. imports of lithium-ion batteries from China grew by 10%, writes PV Magazine, citing CEA. Further, the tariff plans have already caused major carmakers like Honda (HMC) , Toyota (TM) , and Nissan (NSANY) to drop their plans for battery plants and investments outside of the U.S. Could this be good news for some of the U.S.-based battery producers? Image source: Shutterstock Panasonic Holdings Corporation (PCRFF) is one of the world's largest battery makers. It ranks sixth among the 10 top EV battery makers based on 2024 market share, according to South Korean market research firm SNE Research. The list has been dominated by Chinese and Korean companies. Over the recent years, Panasonic has been betting big on Tesla Inc. (TSLA) from the early days of the electric vehicle (EV) market. However, there's been a recent slowdown in EV demand, which has affected Panasonic's battery business, as the company has been one of the main suppliers of Tesla, Mazda, and Subaru. More Automotive: Detroit automakers warn UK trade deal will hurt US auto industryFormer Nissan CEO makes a harsh prediction for the company's futureToyota makes decision on popular crossover US customers will love Other recent challenges, including fierce competition from Chinese companies such as Haier and Midea, have also impacted the company's electronics sector (TVs, refrigerators, microwaves, and similar products), writes NDTV World. On May 9, the company announced it will cut 10,000 staff globally, with half of the jobs eliminated in Japan, and half overseas. The layoffs account for about 4% of its global workforce of around 230,000 employees, reported Reuters. The electronic giant's restructuring move aims to enhance profitability and achieve a 10% return on equity by the fiscal year ending in March. Panasonic CEO Yuki Kusumi recently said its main customer (most likely Tesla) is urging the company to accelerate the start of production at its new Kansas plant, reported Financial Times. "As we've been told by our customer to get Kansas moving quickly, we're hurrying to do so," Kusumi said in an interview in Tokyo. While he did not directly mention Tesla, the EV giant was Panasonic's biggest customer for a long time. The desire to accelerate supplies of Panasonic's American-made products stems from U.S. tariffs that have made Chinese batteries less profitable to bring to the country. Kusumi mentioned that the customer is thinking about switching from Chinese-made batteries to domestically produced ones, as this move could make their electric vehicles eligible for U.S. consumer tax credits. For about eight years, the tech giant has been producing batteries in Nevada, supporting Tesla in boosting production and sales of Tesla's Model 3 and Model Y vehicles, writes The Japan Times. The Kansas battery factory has been under construction since 2022, and it is expected to reach mass production by March 2027, when it will lift its production capacity by 60%. While Panasonic is urged to speed up the production start at its second U.S. factory in Kansas, the company is halting plans for a third plant. "The talk of a third factory was based on anticipation of large-scale EV adoption, but I doubted we'd see a quick transition, especially in the U.S., because of issues such as charging infrastructure, battery cost, and reliability," Kusumi said as reported by The Japan Times. "As things stand now, I'm relieved we didn't move forward with securing a location for a third factory." Related: Elon Musk gets devastating news as the 'anti-Tesla' catches on Kusumi also discussed the possibility of lower demand for EVs, especially at a time when Tesla's CEO Elon Musk has been a target of many unsatisfied U.S. citizens who are against Trump's politics and Musk's leadership of the Department of Government Efficiency. Protests had sometimes even reached the point of vandalism, with Tesla vehicles being set on fire. Tesla's first-quarter automotive sales dropped 20% year over year. Still, Kusumi remains optimistic. "There are risks, but we are planning on robust demand for batteries from our main customer as of now," he said. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
NDTV
12-05-2025
- Business
- NDTV
Japan's Panasonic To Cut 10,000 Jobs: Reasons For Layoffs And What's Next For The Tech Giant
Panasonic Layoffs: Panasonic Holdings, a Japanese electronics giant, is cutting around 10,000 jobs globally, with 5,000 positions eliminated in Japan and 5,000 overseas. Panasonic's decision to cut around 10,000 jobs represents about 4% of its global workforce of approximately 230,000 employees. As per the company, this significant restructuring effort aims to boost profitability and streamline operations. The company expects to incur restructuring costs of approximately $896 million but anticipates a profit increase of $1 billion by March 2027 and $2.1 billion by March 2029, as per Reuters. The layoffs will take place between now and March 2026 after reviewing 'operational efficiency,' mainly in sales departments. The cuts will come through consolidation of sales and indirect operations as well as sites, business terminations and employees in Japan taking early retirement, the company said. The company has assured that all layoffs will be carried out in line with labour laws and regulations in each country. What Panasonic Said The decision to cut 10,000 jobs globally is a strategic move to boost profitability and operational efficiency in a highly competitive market. Panasonic Holdings CEO Yuki Kusumi said in an interview with Japan's Nikkei newspaper in April that "layoffs are necessary to achieve better performance than other companies." Mr Kusumi also said he would return roughly 40% of his compensation amid the job cuts. "In terms of management reform, toward transformation into an organisation where individual employees create higher productivity, the Company will thoroughly review operational efficiency at each Group company, mainly in sales and indirect departments, and reevaluate the number of organisations and personnel needed. In addition, the Company will promote the termination of loss-making businesses with no prospects of improving profit, as well as the integration and closing of sites," the company said in a statement. Other Reasons Behind The Layoffs The move also responds to multiple pressures: a sluggish consumer electronics market, where Panasonic's TVS, refrigerators, and microwaves face intense competition from Chinese rivals like Haier and Midea, and shrinking margins. A slowdown in electric vehicle (EV) demand has also hit Panasonic's battery business, a key growth area supplying Tesla, Mazda, and Subaru. Additionally, global economic uncertainties, including potential U.S. trade tariffs, add complexity, though Panasonic's forecasts don't yet account for these. To stay competitive, Panasonic is pivoting resources toward high-growth areas like AI, biometrics (e.g., facial recognition systems for Expo 2025 Osaka), and energy storage, while exiting low-margin or loss-making segments. The Restructuring Plan Panasonic's restructuring plan involves consolidating and streamlining indirect functions, technology projects, and departments to boost profitability. In its consumer electronics business, the company aims to improve profitability by building "global-standard cost capabilities" and consolidating certain departments. Panasonic will also optimise its IT investments. These measures are expected to yield a minimum profit improvement of $1 billion, with $483 million of that coming from the job cuts. However, the company notes that actual results may vary depending on the number of employees affected and other factors. Why The Layoffs Matter? Panasonic's restructuring move aligns with industry trends, as other tech and industrial giants also implement significant measures to adapt to changing consumer demands, supply chain challenges, and the shift towards sustainable energy solutions. 1. Industry Shift: Panasonic's job cuts reflect the broader industry trend of restructuring to adapt to changing consumer demands, technological advancements, and sustainability requirements. 2. Economic Impact: With 10,000 jobs at stake, the layoffs will have significant economic implications for affected employees, their families, and local communities. 3. Company Restructuring: The move indicates Panasonic's efforts to streamline operations, reduce costs, and focus on high-growth areas like electric vehicle batteries and artificial intelligence. 4. Market Competitiveness: The layoffs demonstrate Panasonic's attempt to stay competitive in a rapidly evolving market, where companies must innovate and optimise to survive. 5. Global Workforce Trends: Panasonic's decision contributes to the growing trend of layoffs and restructuring in the tech and industrial sectors, highlighting the challenges companies face in adapting to changing market conditions. Pioneering electronic appliances from rice cookers to batteries to video recorders, the brand became a global household behemoth in the latter half of the 20th century.
Yahoo
06-02-2025
- Business
- Yahoo
Panasonic Shares Jump Most in 11 Years on Restructuring Plans
(Bloomberg) -- Shares of Panasonic Holdings Corp. soared 15% on its plans to overhaul personnel and trim underperforming businesses, part of a shift into high-margin areas like powering AI data centers. Citadel to Leave Namesake Chicago Tower as Employees Relocate State Farm Seeks Emergency California Rate Hike After Fires Transportation Memos Favor Places With Higher Birth and Marriage Rates San Francisco Wants Wealthy Donors to Help Fix Fentanyl Crisis NY Transit Advocate Says Billions in Tax Hikes Would Fix MTA The Osaka-based company, whose sprawling operations include hairdryers, PCs and lithium-ion batteries used by the likes of Tesla Inc., will restructure low-growth businesses and make changes to its employment structure, according to a statement released Tuesday. After Panasonic's chief executive officer said that the company's long-standing TV operations were under review, its stock climbed on Wednesday in their biggest intraday surge since February 2014. 'There may be other options besides a sale,' Yuki Kusumi told reporters after saying he couldn't comment on whether the company would sell its TV business. 'A part of me can't help but get sentimental about our TVs.' The company plans to boost its profit by more than ¥150 billion ($966 million) by March 2027 and add a further ¥150 billion by March 2029. Part of that push will involve consolidating the company's many production, sales and logistics bases, Kusumi said, adding that executives were discussing how wide-ranging any personnel overhaul should be. 'Panasonic will be cutting headcount substantially and selling off multiple businesses while it is generating profits and cash flow for the first time in its history,' Citi analyst Kota Ezawa said in a note that categorized the restructuring 'some drastic surgery.' 'We think the management team is fully ready and senses the urgency,' he said. Kusumi has been pushing for greater changes at the company, which was founded in 1918. Panasonic will integrate artificial intelligence technology across its operations and team up with Anthropic to boost AI-related revenue, he said in a recent interview. One area that the company has been targeting is data centers' growing need for high-efficiency and heat-resistant components and materials. Once a global leader in consumer electronics, Panasonic is now a key battery supplier to Tesla. It's seeking to expand in software, while fighting for relevance in appliances and industrial devices. In the December quarter, Panasonic reported a 4% rise in operating profit, helped by its lifestyle segment, which includes household appliances such as microwaves and vacuum cleaners, and its energy segment. The maker of automotive-use batteries has been one of the beneficiaries of former US President Joe Biden's Inflation Reduction Act, which provided tax credits to battery factories in the US. Panasonic, which makes batteries in Nevada with expansion plans in Kansas, doesn't foresee a cancellation of those tax credits under President Donald Trump. What Bloomberg Intelligence Says Panasonic could grow profit on generative AI. Panasonic could achieve its sales and operating profit targets for fiscal 2025 ending March. Operating profit in 4Q could remain high, after climbing 4% in 3Q. Its energy division operating profit could rise due to battery demand from data-center customers, while production efficiency can improve in its US factory. Industry-division profit could increase due to robust demand for electronic parts and materials for generative AI. Lifestyle-division profit could stabilize due to cost control, while Panasonic's connect unit profit could also be stable due to cost-management capabilities, including Blue Yonder's supply chain solutions. -Masahiro Wakasugi, senior industry analyst Click here for research --With assistance from Aya Wagatsuma. (Updates with share reaction and analyst commentary) Orange Juice Makers Are Desperate for a Comeback Believing in Aliens Derailed This Internet Pioneer's Career. Now He's Facing Prison Inside Elon Musk's Attack on the US Government Amazon and SpaceX Want In on India's Satellite Internet Market Elon Musk Inside the Treasury Department Payment System ©2025 Bloomberg L.P. Sign in to access your portfolio
