Panasonic plans to restructure its operations to support a strategic shift towards artificial intelligence (AI).
On February 4, 2025, Panasonic Holdings Corporation announced its plans to conduct a group management reform. To reduce fixed costs, it will trim underperforming businesses and overhaul personnel. The century-old Japanese tech firm aims to focus on more lucrative areas such as powering AI data centers.
This move is part of Panasonic’s broader initiative to expand its AI-driven hardware, software, and solution businesses to a 30% share of its total revenue by 2035. The company also aims to boost its profitability by more than 150 billion yen by FY3/27 and 150 billion yen more by FY3/29.
The company’s stock soared 15% upon the announcement as investors see tremendous potential in AI-focused businesses.
One potential low-growth business segment under review is Panasonic’s TV operations. According to Yuki Kusumi, the firm’s CEO, the company is considering other options besides selling this business, as it has sentimental value and long-standing customer trust. Additionally, Panasonic plans to consolidate its numerous production, sales, and logistics bases.
In line with the new overhaul strategy, Panasonic has entered a strategic partnership with Anthropic, an AI company founded by former OpenAI employees. This collaboration, known as the “Panasonic Go” initiative, aims to enhance Panasonic’s AI capabilities and integrate advanced AI solutions into its products and services. Panasonic Go will leverage the company’s extensive expertise, technology, and hardware to create highly competitive AI-driven solutions across various fields. The initiative presupposes continued investment in AI development, platform construction, and the cultivation of software development talent.
Panasonic has continuously been shifting its commercial focus. Originally a consumer electronics retailer, the company later evolved to create automotive-use batteries for industry leaders such as Tesla. However, Panasonic has preserved its lifestyle segment, which includes household appliances such as microwaves and vacuum cleaners, and its energy segment. Moreover, these two segments greatly contributed to the 4% rise in the firm’s operating profit in the December 2024 quarter. Although Panasonic doesn’t plan to suspend its automotive battery business, it aims to revise its growth plans and focus on profitability.
Today, the company is seeking to expand its software offering. Besides, Panasonic is focusing on developing advanced components and materials for data centers. To meet their increasing demand for high-efficiency and heat-resistant solutions, the company has developed High-Temperature Chip Resistors capable of operating at temperatures up to 175°C, enhancing reliability in environments with significant heat exposure.
The focus on data centers is crucial in times when their usage will likely triple due to the rapid AI growth by 2030. All major tech firms are currently investing in new data center projects. For example, SoftBank, OpenAI, Oracle, and MGX aim to invest $500 billion over the next four years to build robust AI infrastructure in the United States within the project Stargate. AWS invests $10B in data centers in the UK and Ohio. Meanwhile, Apple specialists have been developing a chip to run artificial intelligence tools in data centers.
