Struggling Toshiba Corp. may cut jobs as part of its restructuring of loss-making businesses such as semiconductors and home appliances, President Masashi Muromachi indicated Thursday, as the electronics-maker continues to reel from an accounting scandal.
“When it comes to employment, we need to talk with our labor union members. I have been discussing with those in charge of (the struggling) businesses how far we should go,” Muromachi said in an interview with Kyodo News and other media outlets.
He is expected to announce restructuring plans as early as next month.
Muromachi, who took over after Hisao Tanaka’s resignation in July, also suggested he has a rough picture of how to reform Toshiba’s semiconductor unit that includes discrete semiconductors and System LSI (large-scale integration).
But he declined to go into details, saying, “I cannot give answers at this time.”
Toshiba reported a group net loss of ¥12.27 billion for the April-June quarter due to poor sales of home appliances and other products.
But Muromachi denied that Toshiba will pull out of its home appliance business.
The president made the remarks a day after shareholders approved a new management lineup aimed at enhancing corporate governance.
The company increased the number of outside directors after revelations that it had overstated profits for nearly seven years in a “systematic” way.
Muromachi reiterated that he intended to step down as president once he put Toshiba on course for rehabilitation. “I can’t say it would be in either two years’ or one year’s time. But I’d say three years would not be an option,” he said.
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.