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Panasonic has announced its intention to shutter its Business Communications division within the next two years.

In a communication sent to partners, the Japanese conglomerate revealed that the rise of cloud-based solutions has significantly contributed to the decline of its business communications segment.

The email, authored by Carlos Osuna, the Head of the Business Communications Business Unit at Panasonic, expounded that the company perceives the future of this sector as both “unsustainable and uncertain.” Osuna further stated that a “discrepancy” between manufacturing assets and market demands, coupled with research and development endeavors that have “trailed behind” those of competitors, have led to continuous financial losses in the business.

Facing Setbacks Insiders familiar with the situation indicated that Panasonic’s Business Communications sector was progressively conceding its competitive edge to rivals in Asia and the US, albeit maintaining a comparatively stable position in the EMEA region. The manufacturing operations are slated to continue until 2022, and a support program for parts and assistance will be maintained until 2029. Partners have been reassured that it’s “business as usual for now.”

The looming threat of job cuts hovers over all employees in the Business Communications division, as the consultation process is scheduled to commence next week. The revamped structure of the business is anticipated to be unveiled in April, coinciding with the start of the financial year.

In his email message, Osuna conveyed:

“We feel a profound regret as we bid farewell to a venture that boasts decades of history and established trust.”

“Recent years have witnessed Panasonic’s determined efforts to devise strategies that would ensure the sustainability of the business, both in terms of our organizational setup and partner relationships. Regrettably, it has become evident that such endeavors are no longer tenable within the current business landscape, given the limitations posed by our factory resources.”

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