Panasonic to exit refrigerator, washing machine business in India; layoffs 'necessary': Report

Panasonic Holdings is downsizing its consumer electronics business in India by discontinuing operations in the refrigerator and washing machine categories, the Economic Times reported on Wednesday, citing two industry executives.

The move comes as Panasonic struggles to gain meaningful market share in the segments, capturing only 1.8% of the washing machine market and about 0.8% in refrigerators, ET said, citing data from NielsenIQ shared by an industry executive.

The company has faced stiff competition from Korean manufacturers LG and Samsung, as well as China’s Haier.

Panasonic India will continue to focus on televisions and air conditioners as part of the revamp, the report said.

"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," ET quoted a Panasonic India spokesperson as saying.

The company will support dealers with inventory liquidation and continue to provide full customer service, including warranty and parts support, the spokesperson added.

While the number of job cuts remains under evaluation, the report said layoffs could be in the high double digits. Panasonic is attempting to redeploy some staff internally.

Panasonic is also informing all partner companies sourcing products from the Haryana facility to allow sufficient time for transition, the spokesperson said, calling the layoffs a "difficult but necessary step."