Panasonic To Cut 10K Jobs, Exit Businesses

[cgpublic]

From today's NYTs, interpret the news as you see fit and act accordingly:

Panasonic to Cut 10,000 Jobs in Major Overhaul: The Japanese technology conglomerate plans to shed underperforming businesses and shift its focus to new areas of growth.

"Japanese tech giant Panasonic is planning to pare troubled business lines and its work force by thousands as it aims to reorient itself for a technological era no longer dominated by its traditional electronics."

"In a statement on Friday, Panasonic said that it would cut about 10,000 jobs globally, or about 4 percent of employees, primarily within the fiscal year that started in April. The cuts include 5,000 jobs in Japan and 5,000 overseas. As part of its effort to bolster profitability, the company said it would 'promote the termination of loss-making businesses with no prospect of improving profit.'"

[Tim n Tempe]

the company said it would 'promote the termination of loss-making businesses with no prospect of improving profit.'

Buy the 4K players now. Seriously.

[PUsokrJosh305]

Panasonic makes a whole bunch of different electronics and has different divisions for them. This article doesn't say anything about " TV or Blu-ray player production."

The possibility is there but I wouldn't worry right now.

[Tim n Tempe]

Originally Posted by PUsokrJosh305

Panasonic makes a whole bunch of different electronics and has different divisions for them. This article doesn't say anything about " TV or Blu-ray player production."

The possibility is there but I wouldn't worry right now.

There is no reason to worry. From this announcement until the end of this year there is still plenty of time to purchase one of their soon to be extinct 4K players.

[Naiera]

They’ve long since stopped doing any sort of R&D for UHD players and they’re not selling them at a loss, so I don’t see any reason whatsoever to fear that this will impact them at all.

[Tim n Tempe]

Originally Posted by Naiera

They’ve long since stopped doing any sort of R&D for UHD players and they’re not selling them at a loss, so I don’t see any reason whatsoever to fear that this will impact them at all.

Any reason whatsoever huh? They have never sold any of their disc playing hardware at a loss. Every year the disc market shrinks considerably. There is absolutely no way their sales are going to “improve” (their wording) in an already dying market.

I’m actually shocked their 4K players lasted 8 years.

[BXR 1138]

StarFuryG7 would love this thread.

[Streamingsux]

So...this is how it ends!

[Robert Zohn]

All of my Panasonic and Technics friends and contacts at HQ in Japan, and the USA are fine and doing very well.

[BobSimms]

I use Sony players exclusively.

[Streamingsux]

Originally Posted by BobSimms

I use Sony players exclusively.

Which Sony 4K player would you say is the best?

[danny24]

They have been making the same players for about almost a decade now. Even if they stop making them they must have a ton of parts to keep supply going for a little while at least.

[cgpublic]

...of the article provides insight to where Panasonic seeks to invest for the future. It doesn't appear that consumer electronics will remain a large part of their focus, although that view doesn't preclude Panny finding a buyer for those businesses:

Founded in Osaka over a century ago, Panasonic has maintained an array of businesses from televisions and digital cameras to mobile phones and kitchen appliances. Once a leader in consumer electronics, the company over the past two decades has grappled with how to reorient its sprawling operations.

Panasonic’s profitability began to decline in the mid-2000s, culminating in significant losses in the early 2010s. Under its former president, Kazuhiro Tsuga, who assumed the role in 2012, the company cut struggling businesses such as plasma televisions. By the mid-2010s, Panasonic was no longer bleeding red ink.

Since succeeding Mr. Tsuga in 2021, the current president, Yuki Kusumi, has continued this strategic overhaul, aiming to free up cash to invest in new areas of growth. Under Mr. Kusumi, the group has invested large sums of money in factories to supply automakers like Tesla with batteries for electric vehicles.

Panasonic has also been working to grow its presence in software and artificial intelligence technologies. This was highlighted by its more than $7 billion acquisition of Arizona-based software company Blue Yonder, which was finalized in 2021.

On Friday, Panasonic said that it expects restructuring costs of roughly $895 million for the current fiscal year. Panasonic said that through its overhauls, it aims to improve profits by at least $1 billion.

[cgpublic]

Originally Posted by Tim n Tempe

There is no reason to worry. From this announcement until the end of this year there is still plenty of time to purchase one of their soon to be extinct 4K players.

Without any hard numbers specific to UHD SKU availability in the distribution channel, it's impossible to determine how this might play out, especially for specific models.

Let's face it, some enterprising folks may begin buying in bulk, perhaps impacting price and availability, for the higher-end 820 and 9000. On the other hand, if we look to Denon discounts driven by the sale of Sound United to Samsung, it may lead to lower prices.

I already own two 820 players, an UHD LG UBK90, and two UHD Sony players, x800 and x700, the latter region-free. I also have an Xbox with a UHD drive, and a Sony S3700 Blu, also region-free.

Picking up an 820 and keeping it sealed is not a necessity as far as future-proofing, but does provide some peace of mind as the 820s are my workhorses. I sold my Oppo because the 820 was a bit better for UHD playback and at the time believed the 820s would be supported over the long-haul. Perhaps not.

Time will tell.

[sherlockjr]

Panasonic is one of the world's largest suppliers of high end professional video production equipment. My guess would be that the same type of engineers can do work on BD players. And as one of only two remaining mass market manufacturers of UHD/BD players they'd want to remain in that business to support that space.

Also, as mentioned, they haven't had to do any new engineering on BD players for many years. Just an occasional firmware tweak. Engineering and R&D on those players is long since amortized over the last eight years, so I'd think (I don't know) that there's a whole lot of profit made in each unit they sell.

I'm hoping a big share of the market and a nice profit with each unit means they'll continue to build and sell them. Or maybe they partner with major disk labels to subsidize, since without players, the disk companies have no customers. But I'm an optimist, we'll see if I'm right.

[Naiera]

Originally Posted by Tim n Tempe

Any reason whatsoever huh? They have never sold any of their disc playing hardware at a loss. Every year the disc market shrinks considerably. There is absolutely no way their sales are going to “improve” (their wording) in an already dying market.

I’m actually shocked their 4K players lasted 8 years.

If they’re not sold at a loss, why would they stop selling them?

[HeavyHitter]

Originally Posted by Tim n Tempe

Any reason whatsoever huh? They have never sold any of their disc playing hardware at a loss. Every year the disc market shrinks considerably. There is absolutely no way their sales are going to “improve” (their wording) in an already dying market.

I’m actually shocked their 4K players lasted 8 years.

And yet Sony still has still lasted. I think you're catastrophizing a bit.

[Tim n Tempe]

Originally Posted by HeavyHitter

And yet Sony still has still lasted. I think you're catastrophizing a bit.

Fine. We will see how things are at the end of the year.

[alchav21]

Originally Posted by Naiera

If they’re not sold at a loss, why would they stop selling them?

They might not be sold at a loss, but are they really selling at a good Profit Margin? With Disc sales going down I'm sure Panasonic will be looking at the Blu-ray Player Department for cuts!

[Steel76]

"about 4 percent of employees".

No need to panic.