Panasonic Streamlines India Operations
Japanese Firm Shifts Focus in Consumer Electronics
Panasonic Holdings is making big changes in India. They are stopping production of refrigerators and washing machines. This is part of a plan to focus on more profitable areas.
What’s Changing?
- Panasonic is stopping production of refrigerators and washing machines at its Jhajjar factory in Haryana.
- The company will now focus on products like televisions and air-conditioners.
- Panasonic has found it hard to compete in these markets.
Market Challenges
Panasonic faces strong competition from brands like LG, Samsung, and Haier. Their current market share is quite low:
- 1.8% in washing machines
- 0.8% in refrigerators
Impact on Workers
Panasonic India has not yet decided on the exact number of job cuts. However, it will likely be in the “high double digits.” Some workers may find new roles within the company. The factory will still operate, making products for other brands.
Official Statement
A Panasonic India spokesperson explained the decision:
“We are changing our focus to grow in areas like home automation, air-conditioning, B2B solutions, and energy solutions.”
Support for Partners and Customers
Panasonic will help dealers sell their remaining stock. They will also ensure that customers continue to receive service and support, including warranty and spare parts coverage.
“Job cuts are tough but necessary,” the spokesperson said. They added that the company is helping affected workers through this transition.
Global Changes
This move follows Panasonic’s global plan to cut 10,000 jobs, or about 4% of its workforce. The goal is to simplify operations, close unprofitable businesses, and become more agile in a tough global economy.
Looking Ahead
Despite these challenges, Panasonic is still committed to sectors like air-conditioning, EV batteries, and B2B solutions. In India, they will focus more on residential and commercial ACs and televisions. This is part of a plan to concentrate on more profitable and sustainable areas.
