Japanese electronics giant Panasonic Holdings will lay off a portion of its workforce in India as it exits the country’s refrigerator and washing machine segments. The company has confirmed that it will halt production of these products at its Jhajjar factory in Haryana, marking a significant shift in its India strategy. The restructuring aligns with Panasonic’s renewed focus on more lucrative and future-ready business areas.
The development was first reported by The Economic Times, citing industry executives, and was later confirmed by a Panasonic India spokesperson. The spokesperson stated, “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.” The company also assured that it would support inventory clearance for dealers and continue offering complete customer service, including parts replacement and warranty fulfilment.
The scale of the layoffs is yet to be finalised, but the report notes that job losses are likely to run into the high double digits. The company is currently evaluating the exact number of employees who will be impacted by the decision.
Panasonic has had a long-standing presence in India, dating back to the 1970s. Operating under the banner of Panasonic Life Solutions India (formerly Anchor) and Panasonic Energy India, the company has built a diverse manufacturing and distribution network across the country. With headquarters in Gurgaon, its industrial footprint includes facilities in Jhajjar, Sri City, Daman, Haridwar, and Pithampur.
The Jhajjar facility, according to a 2020 company press release, had a manufacturing capacity of over 4.5 lakh air conditioners, 3 lakh washing machines, and 5 lakh refrigerators annually. However, the ET report suggests that this plant is now being repurposed for contract manufacturing for other brands, as Panasonic winds down its own operations in these categories.
Despite the exit from refrigerators and washing machines, the company will continue to operate in India’s television and air-conditioner segments—two areas that have shown stronger performance in terms of consumer demand and revenue contribution.
In a recent interview with PTI, Manish Sharma, Chairman of Panasonic India, said the company achieved revenue of ₹11,500 crore in FY25, with net profit exceeding ₹1,100 crore—a year-on-year increase of 41%. He added that the firm is aiming for double-digit growth in FY26, with key focus areas including air conditioners, electrical devices, and smart factory solutions.
The company’s shift in strategy is largely seen as a response to intense competition from global players like LG and Samsung, as well as Chinese brands such as Haier, which have eroded Panasonic’s market share in refrigerators and washing machines. According to market estimates, Panasonic has struggled to capture more than 1–3% of the Indian market in these two segments.
The exit highlights a broader trend among legacy electronics manufacturers reassessing their product strategies in light of shifting consumer preferences, price wars, and operational inefficiencies. While Panasonic’s move may streamline its focus and capital allocation, it also raises questions about the employment impact on factory workers and the future of contract manufacturing at its Jhajjar facility.
As Panasonic repositions itself in India’s consumer and B2B electronics space, all eyes will be on how effectively it can navigate this transition and retain its brand relevance in a fast-evolving market.
