Toshiba to Cut Over 3,000 Jobs in Japan as Part of Major Restructuring
Japanese technology giant Toshiba plans a massive restructuring to better operate its business and improve profits. The company will soon cut more than 3,000 jobs in Japan. The move is part of the company’s broader strategy to reduce costs and concentrate resources in key areas.
5% Workforce Reduction
According to a report by Japan’s leading news agency Kyodo News, Toshiba had sought applications from employees for voluntary retirement under its “Early Retirement Scheme”. More than 3,000 employees have agreed to be a part of the scheme, which is about 5% of the company’s total Japanese workforce.
Strategy to Improve Profits
Toshiba believes that this move will increase its focus in important areas such as infrastructure and power transmission and distribution. Better allocation of resources in these areas is expected to increase profits.
Toshiba’s Acquisition and Plan to Exit the Stock Market
Toshiba has recently been acquired by a consortium led by Japan Industrial Partners (JIP) for 2 trillion yen (about 95.76 billion yuan). This acquisition marks the beginning of a new chapter for the company, as the company prepares to delist from the stock market in December 2023.
Toshiba has been facing constant challenges for the past decade. The Fukushima Nuclear Plant Accident in 2011 led to huge losses in the US nuclear power division. After this, in 2015, the company was caught in a major accounting scandal, which weakened the company’s financial position.
Previous Sale of Major Businesses
Toshiba has raised cash by selling its various business units in recent years:
- Medical Device Business: Sold to Canon
- Laptop Business: Sold to Sharp.
- White Goods Business: Acquired by Midea Group.
- Black Goods Business: This business unit was bought by Hisense, which includes products such as color TVs, stereos and game consoles.
Further Plans
Toshiba announced in May 2023 that it could cut up to 4,000 jobs in Japan. Apart from this, the company also plans to merge four subsidiaries into its parent company to reduce costs.
This move by Toshiba is a sign of a major change in the Japanese corporate world. This restructuring is a strategy to move the company towards financial stability and long-term growth. Although this will be a difficult time for thousands of employees, the company hopes that it will help increase profits and focus on its priorities.
