Panasonic to Lay Off Workers as It Exits Refrigerator, Washing Machine Biz in India

Japanese electronics manufacturer Panasonic Holdings is set to lay off some of its factory workers in India as it exits the country’s competitive refrigerator and washing machine segments. The company, which operates under the name Panasonic Life Solutions India, has confirmed it will shut the production line for these products at its factory in Jhajjar, Haryana.

The exit was first reported by The Economic Times (ET), citing industry executives. Later, a company spokesperson confirmed the development.

"In line with our global strategy and evolving market dynamics, Panasonic in India is rebuilding operations to focus on future-ready growth segments such as home automation, heating, ventilation & cooling (AC), B2B solutions, electricals, and energy solutions. Panasonic will support dealers in inventory liquidation and continue providing full customer service, including parts and warranty coverage," the spokesperson told the newspaper.

The report added that the company is still evaluating the number of workers to be laid off due to the restructuring exercise, but it is expected to be in the high double digits.

Panasonic has been selling consumer electronics and industrial products in India since the 1970s. It operates through key entities such as Panasonic Life Solutions India (formerly Anchor) and Panasonic Energy India. Headquartered in Gurgaon, the company has a strong manufacturing footprint, producing ACs, TVs, wiring devices, lighting, batteries, and EV components, with factories in Jhajjar, Sri City, Daman, Haridwar, and Pithampur.

According to a 2020 press release, Panasonic’s Jhajjar facility had a manufacturing capacity of over 4,50,000 units of air conditioners, 3,00,000 washing machines, and 5,00,000 refrigerators, among other products and solutions. The ET report says the plant is now being used for contract manufacturing for other brands.

The company will continue to operate in two major consumer electronics categories in India — televisions and air-conditioners.

In a recent interview with PTI, Panasonic India Chairman Manish Sharma said the company is targeting double-digit growth in FY26. He noted that in FY25, revenue crossed ₹11,500 crore, and net profit exceeded ₹1,100 crore — a 41% increase. In FY25, the B2B segment contributed 50% of revenue, while consumer goods accounted for 30%. Key growth drivers included air conditioners, electrical devices, and smart factory solutions.

However, reports suggest that cutthroat competition from LG, Samsung, and Chinese brands like Haier has made it difficult for Panasonic to secure more than 1–3% market share in refrigerators and washing machines.

India Layoffs Follow Global Job Cuts

The restructuring in India comes as part of Panasonic Holdings’ global overhaul, where it plans to cut around 10,000 jobs — 5,000 in Japan and 5,000 overseas — amounting to roughly 4% of its 230,000-strong workforce, the company announced in May this year. The move is part of a major restructuring plan aimed at improving profitability and operational efficiency, particularly in sales and indirect functions.

The company expects to incur $896 million in restructuring costs but aims to boost profits by $1 billion by March 2027 and $2.1 billion by March 2029. CEO Yuki Kusumi said the layoffs are necessary to outperform rivals.

The company is also exiting loss-making businesses, closing sites, and shifting focus to high-growth areas like AI, biometrics, and energy storage.