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Toshiba eyes thousands of job cuts, sale of Toshiba Tec, in major restructuring

Kyodo

Toshiba Corp. is considering slashing several thousands of jobs worldwide as it aims to restructure its loss-making, television, personal computer and white goods businesses, sources close to the matter said Tuesday.

The scandal-hit conglomerate is expected to solicit early retirements and to transfer workers, the sources said, adding that the company could unveil such plans on Monday.

The envisaged job cuts are part of Toshiba’s broader restructuring following revelations this year that the company inflated profits over a period of almost seven years.

The downsizing of Toshiba’s Ome complex in west Tokyo, which develops TVs and PCs, is also under consideration, the sources said.

In its global TV business, Toshiba is expected to sell a plant in Indonesia to a foreign maker.

A plant in Indonesia that produces washing machines will likely be sold as well, sources have said.

As of March, Toshiba’s lifestyle division in charge of white goods, TVs and PCs had over 24,000 employees both in Japan and abroad. The division logged a ¥42.5 billion operating loss for the first half of fiscal 2015.

Toshiba has already decided to withdraw from its image sensor and white light-emitting diode business, which would lead to some 2,300 job cuts and transfers.

Units to be axed include its Tokyo-listed office equipment subsidiary Toshiba Tec Corp., separate sources said.

By selling its majority stake in Toshiba Tec, a manufacturer of information terminals for retail stores, the conglomerate plans to further focus on its mainstay businesses, such as nuclear power and semiconductors, the sources said.

Toshiba Tec incurred a group net loss of ¥7.4 billion for the first half of fiscal 2015 due to its sluggish point-of-sale system business, delivering a blow also to its struggling parent company.

Toshiba Tec and its subsidiaries employ around 20,000 people.

Toshiba President Masashi Muromachi has said he will proceed with restructuring “without limits” after the accounting scandal led the firm to revise downward its profits totaling ¥224.8 billion on a pretax basis from April 2008 to December 2014.

  • Don Corleone

    What a shame, I used to be big Toshiba supporter – great quality, fair price. Then I stopped seeing the brand in the states. I hope the restructuring helps Toshiba get back on top.

  • Don Corleone

    What a shame, I used to be big Toshiba supporter – great quality, fair price. Then I stopped seeing the brand in the states. I hope the restructuring helps Toshiba get back on top.

  • Fumio Sakuragi

    This Dynabook user purchased another Toshiba product recently. I have been satisfied with the television recorder despite my inability to make the most of many benefits it offers. A lot of copy-protection technology must have sapped Toshiba and Sharp and enriched ex-ministry officials and other JASRAC-like organizations

    Axes are about to fall upon as many as 7,000 and 24,00 workers Toshiba employs in Japan and overseas. The white-collar executives again will have a happy retirement protected by legal muscles. No public officials or executives became jail birds from the 50 trillion-yen debt fiasco in the 80s, Olympus or any other white collar crimes. So I laud the Yamaichi Securities Co’s president who asked for mercy in 1997 on behalf of his 6,000-strong employees for the 450-billion-yen that his predecessors kept on inflating in the company’s balance sheet. Long live Justice that prevails in Japan.

  • zer0_0zor0

    Toshiba has become all hype and short on QC of late. Our high-end model washer-dryer has had multiple issues, all of which should have been addressed in the design.