TOKYO (AP) — Panasonic will slash its global workforce by 10,000 people, half in Japan and half overseas, to become a more efficient, “lean” company, the Japanese manufacturer said.

The job cuts, amounting to about 4 percent of its 230,000 workers, will include early retirement offers in Japan and closures and consolidation of various operations, according to the Osaka-based maker of home appliances, such as washing machines and refrigerators.

Panasonic also makes solar panels, delivery robots, facial recognition technology, fuel cells for homes and EV batteries for Tesla cars.

Panasonic also reported a 17.5 percent drop in profit for the fiscal year through March at $2.5 billion, down from $3 billion in the previous fiscal year. Its sales totaled $58 billion, down 0.5 percent year-on-year.

The company said the slowing global economy and weaker demand for electric vehicles were factors behind its weak results. Yet sales of air-conditioners and consumer electronics products held up in Japan, it said.

The company’s chief executive, Yuki Kusumi, told reporters his heart felt heavy in announcing the job cuts.

Panasonic forecast that its profit will improve by at least $1 billion by the fiscal year through March 2027, and by $2.1 billion by the fiscal year through March 2029.

That will be achieved through management reform, closure of unprofitable businesses and building a system that’s more responsive to changes in the business environment, officials told reporters.

Yet the turnaround will take time and profit will slip further in this fiscal year. For the fiscal year through March 2026, Panasonic is projecting a $2.1 billion profit on $54 billion sales.

Panasonic said it remains bullish about EV batteries and plans to supply Japanese automakers Mazda Motor Corp. and Subaru Corp. in new strategic partnerships.