TOKYO (AP) – Japanese electronics and technology company Panasonic has announced a significant leadership change as it reported a modest profit increase in its first quarter. The company, known for its diverse product range including home appliances, solar panels, and batteries, will see Kenneth William Sain, a former executive from Boeing, take over as president and chief executive officer in April 2026. He will succeed Yasuyuki Higuchi, who praised Sain’s extensive global experience and deep understanding of both business and technology.
Sain has been with Panasonic since 2019, serving as the CEO of Panasonic Avionics. Under his leadership, the company expects to continue navigating through challenging market conditions while also focusing on innovation and growth. Panasonic Holdings Corp. reported a profit of 71.46 billion yen ($483 million) for the April to June quarter, marking a 1.2% increase from the previous year's 70.6 billion yen. However, the company is facing declining sales, which fell by 10.6% year-on-year to 1.9 trillion yen ($12.8 billion).
Despite the drop in sales, Panasonic has maintained its full-year profit forecast at 310 billion yen ($2.1 billion), which represents a decrease of 15% from the prior year. The company indicated that it has not yet fully accounted for the implications of U.S. President Donald Trump’s tariffs, which are expected to have an ongoing impact on its business operations. To mitigate potential losses, Panasonic plans to implement cost cuts and additional strategies to shield its operating profits.
Panasonic has observed strong consumer electronics sales in Japan and a healthy market presence in China, bolstered by government subsidies. Additionally, the company remains optimistic about the growing demand for AI servers and air conditioning units. However, there are concerns about a potential slowdown in the demand for electric vehicles, attributed to U.S. tariffs and the expiration of tax credits for electric vehicle buyers.
In a move to strengthen its production capabilities, Panasonic is set to launch its new lithium-ion battery factory in Kansas later this year, a project that has faced delays. This facility is crucial for supporting its operations, especially in meeting the demand for electric vehicle batteries in the U.S. market.
In line with its restructuring plans, Panasonic announced in May that it would reduce its global workforce by 10,000 employees, dividing the cuts equally between Japan and international locations. This reduction, amounting to about 4% of its total workforce, is part of the company’s strategy to streamline operations and adapt to changing market conditions.
The appointment of Kenneth William Sain as the new CEO comes at a critical moment for Panasonic, as the company seeks to navigate through ongoing challenges while capitalizing on growth opportunities in various sectors. With Sain’s extensive background and experience, there is an expectation of renewed focus on innovation and effective leadership in the coming years.
