At the Q3 FY2024 financial results briefing on February 4, 2025, Panasonic Holdings CEO Yuki Kusumi sparked intense public reaction after stating that “Panasonic Corporation will be dissolved toward development during FY2025”and that “we are ready to sell the TV business.”
These remarks were widely misinterpreted by several media outlets, leading to the mistaken belief that Panasonic would vanish as a brand or that the sale of its TV business had been decided.
In reality, the company is undergoing a strategic restructuring, not a liquidation.
Official Clarification from Panasonic
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On February 4, Panasonic issued a statement titled “Regarding Today’s Media Reports”, emphasizing:
“We are examining all options to reform the profit structure of underperforming business segments, including TVs, but no decisions have been made to sell or withdraw from any businesses at this time.”
A follow-up announcement on February 5 further clarified:
“Some misleading reports have appeared regarding the Panasonic name and brand.
The ongoing reorganization concerns Panasonic Corporation—not Panasonic Holdings as a whole.
The Panasonic brand remains a core asset, and we will continue to use it to serve our customers and society.”
Restructuring Plan: Evolution, Not Disbandment
Panasonic Corporation (internally referred to as ‘Pana-kabu’ or ‘PC’) currently oversees several key subsidiaries, including:
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Kurashi Appliance Company – household appliances such as refrigerators and washing machines
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Air Quality & Air Conditioning Company – air conditioners and purifiers
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Cold Chain Solutions Company – food display and refrigeration systems for convenience stores
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Electric Works Company – lighting and electrical equipment
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China & Northeast Asia Company – business operations in China and Northeast Asia
Under the restructuring plan, these subsidiaries will become independent business companies, marking an evolution rather than a dissolution.
Since April 2022, Panasonic Holdings has operated under a multi-company system, including Panasonic Connect, Panasonic Industry, and Panasonic Energy. Panasonic Corporation currently sits alongside them. However, after restructuring, Panasonic Corporation itself will be dissolved, and its subsidiaries will be elevated to the same level as other business entities under the Holdings group.
Formation of Three New Business Companies
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Smart Life Corporation (tentative) – merging Kurashi Appliance Company, China & Northeast Asia Company, and the TV/digital camera business (from Panasonic Entertainment & Communication); focused on B2Coperations.
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Air Quality & Food Distribution Corporation (tentative) – merging Air Quality & Air Conditioning Companyand Cold Chain Solutions Company.
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Electric Works Corporation (tentative) – derived from Electric Works Company.
After these transitions, Panasonic Corporation will no longer exist, but Panasonic Holdings and the Panasonic brandwill remain intact.
Brand Name Legacy and Future
CEO Kusumi noted:
“We have yet to decide whether the name Panasonic Corporation will be retained. This remains under discussion.”
This applies only to Panasonic Corporation, not Panasonic Holdings.
While the name Panasonic Corporation—descendant of the historic Matsushita Electric Industrial Co., Ltd.—may disappear temporarily, it could reemerge, possibly under the new Smart Life Corporation.
However, given that the Panasonic brand now spans far beyond consumer electronics, encompassing multiple B2Bsectors, retaining that name for one division alone may no longer reflect its broader business scope.
Purpose: Driving Synergy and Efficiency
The central goal of this corporate transformation is to enhance synergy and operational efficiency.
Panasonic’s Medium-Term Strategy (FY2022–FY2024) set targets of ¥2 trillion in cumulative operating cash flow, ¥1.5 trillion in total operating profit, and an ROE above 10%.
So far, only the cash flow target appears achievable.
In comparison:
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Sony Group has leveraged synergies between gaming, music, and film to generate strong integrated profits.
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Hitachi has connected its Digital Services, Green Energy & Mobility, and Connected Industries divisions via the Lumada platform, driving growth across sectors.
Panasonic’s market capitalization (around ¥4 trillion) lags behind Sony’s (¥21 trillion) and Hitachi’s (¥18 trillion)—a reflection of weaker inter-divisional synergy.
CEO Kusumi’s View: Turning Crisis into Opportunity
Kusumi acknowledged that Panasonic’s “vertical organizational structure” and limited cross-company collaboration have hindered synergy creation. Yet he sees this as untapped potential:
“The absence of synergy means vast opportunities ahead. We must pursue integrated solutions, offering multiple products and services to the same customer.”
By dissolving Panasonic Corporation—which accounts for over 40% of total revenue—each new company can now collaborate more freely with both B2B and B2C divisions across the group.
Emerging Synergy Examples
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Electric Works Company is partnering with Panasonic Connect to deliver site-based customer solutions.
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Hussmann (Panasonic Cold Chain Solutions, USA) collaborates with Panasonic Connect Blue Yonder to develop integrated food retail supply chain systems.
These cross-company initiatives exemplify the new synergy-driven model that Panasonic aims to scale, transforming the current “crisis” into a catalyst for sustainable growth.
Key Takeaway
Panasonic is not dissolving—it is transforming.
Through strategic restructuring, the company aims to foster agility, synergy, and innovation across all divisions while preserving its iconic global brand.