Panasonic has outlined reorganization plans as part of its effort to boost revenue.
The company will reduce its current five divisions into three: Consumer, Components and Devices, and Solutions. By doing so, Panasonic says that it is more effectively "putting customers' perspectives in the center."
Panasonic's decision to reorganize its operation comes at a time when it's actually performing well financially. The company said today that it generated nearly 8.7 trillion yen in revenue during the fiscal year that ended March 31, easily besting the previous year's revenue of 7.4 trillion yen ($106.8 billion). The company posted a profit of 74 billion yen ($908.4 million) during the fiscal year, up from the 103 billion yen loss it incurred the previous year. Much of the growth was due to in its financial figures for the first time, the company said.
Panasonic's Consumer division will be made up of AVC Networks, which includes its televisions and other consumer products, as well as the company's heating and cooling business and home appliances. The AVC Networks side of the operation will be charged with developing "easy-to-use network-connectable products that fit for everyday living." Its heating and cooling and home appliances efforts will continue to operate as they do now but increase the focus on "small cooking appliances and personal care and health care products."
Panasonic said it hopes to see its AVC Networks business grow by 113 percent over the next two years. It wants to see its heating and cooling and appliances businesses grow 94 percent over the same period.
On the Components and Devices side, Panasonic has grouped its automotive systems, components operation, and energy devices. The company said that over the next two years, it wants the division to take the top spot in automobile navigation technology, as as well improve profitability in smartphone component production. It also plans to double down on the production of electrodes and battery packs.
Finally, the Solutions business will be charged with improving Panasonic's cloud-computing services, increasing focus on LED lighting, and providing in-hospital work assistance.
Panasonic didn't just stop at the product level. The company also announced today that it will be consolidating the number of headquarters around the world to just six locations, including its corporate headquarters in Japan and five regional offices covering North America, China and Northeast Asia, Latin America, Africa and the Middle East, and Europe.
During the reorganization process, Panasonic expects to reduce its workforce to 350,000 employees. The company currently has over 366,000 employees, down from the more than 384,000 people it employed last year.