Panasonic announces leadership change as profits barely rise

Japan's Panasonic Holdings Corporation announced a new chief executive officer after a modest rise in its quarterly profits. Kenneth William Sain, previously the CEO of Panasonic Avionics, will replace Yasuyuki Higuchi as president and CEO in April 2026. The announcement comes after the company reported a profit of 71.46 billion yen ($483 million) for the first quarter, marking a slight increase from the previous year's 70.6 billion yen. However, its quarterly sales declined 10.6% to 1.9 trillion yen ($12.8 billion), a concerning trend for the multinational corporation that specializes in electronics, home appliances, and batteries. The company maintained its full-year profit forecast at 310 billion yen, which represents a significant decline of 15% year-over-year. The pressures from U.S. tariffs during the Trump administration have impacted Panasonic's business, and the company indicated that these effects have not yet been fully addressed. To mitigate the resulting financial strain, Panasonic plans to implement cost-cutting measures and other strategies. Despite these challenges, strong consumer electronics sales have been noted in Japan and China, enhanced by government subsidies. Furthermore, rising demand for artificial intelligence servers and air-conditioning units is anticipated, although there are worries about reductions in electric vehicle demand due to tariffs and the cessation of tax credits. In light of the evolving industry landscape, Panasonic is also advancing plans for a new lithium-ion battery factory in Kansas, which has faced delays. As part of a broader restructuring, Panasonic announced in May that it would reduce its global workforce by 10,000 people, representing roughly 4% of its total workforce, to streamline operations and position itself for future growth.