Panasonic’s Global Layoffs of 10,000 Impact Traditional Business; Midea Actively Adjusts Focus on Efficiency and Overseas Expansion

Recently, Japanese home appliance giant Panasonic announced a global layoff plan involving about 5,000 employees each in Japan and overseas. The layoffs aim to “improve efficiency,” with plans to shut down loss-making businesses, consolidate redundant organizations, and focus on emerging sectors such as new energy batteries and smart homes. Panasonic’s latest financial report shows a 17.5% year-on-year profit decline over the past year, with continued shrinkage in the TV business and losses in the air conditioning segment. Earlier this year, Panasonic split its home appliance division into three subsidiaries and plans to divest its TV business.

At the same time, China’s home appliance leader Midea Group was reported to plan layoffs of 30,000 employees in two waves this year, with the first round completed, though the company has yet to comment officially. Unlike Panasonic, Midea’s 2024 revenue reached 409.1 billion yuan, with net profit increasing 14.3% year-on-year, demonstrating steady performance.

The layoff logic behind the two companies is distinctly different: Panasonic is forced to cut costs to stop losses, carrying out large-scale organizational slimming and business restructuring; Midea, on the other hand, proactively optimizes its workforce during a period of growth, focusing on improving per capita revenue and organizational flexibility. Data shows Midea has over 160,000 employees worldwide, with average annual revenue per employee around 2.5 million yuan, still below industry leaders.

Recently, Midea has successively acquired the Spanish kitchen appliance brand Teka and the China business of European heating giant Stiebel Eltron, strengthening its overseas Own Brand Manufacturing (OBM) layout. The layoffs may be aimed at resource consolidation to focus on new retail and global expansion strategies.

In response to layoff rumors, Midea has only stated that “personnel optimization is routine operation,” while Panasonic clearly said this adjustment aims to pave the way for profit growth in fiscal 2026. Industry analysts generally believe the strategies of both companies reflect an industry commonality: home appliance giants are slimming their organizations to cope with saturated markets while betting on emerging fields.

The layoff storm has triggered concerns in the supply chain and capital markets. Distributors are struggling with inventory pressure and low profits, and investors focus on the effectiveness of corporate transformation. Whether Panasonic can rebound by leveraging new energy sectors, and whether Midea’s global acquisitions can realize synergy effects remain to be seen. What is certain is that the competition in the home appliance industry is shifting from scale expansion to efficiency battles, and layoffs are just the prelude to rebuilding competitiveness.

More home appliance companies are likely to join this “slimming” competition. As Hisense said during its workforce optimization, “Extreme capability is the only choice to face the future.” The survival rules of the home appliance industry are undergoing profound redefinition.