Date
18 January 2017
Toshiba’s restructuring moves had been “behind the curve”, the conglomerate’s president Masashi Muromachi admitted on Monday. Photo: Bloomberg
Toshiba’s restructuring moves had been “behind the curve”, the conglomerate’s president Masashi Muromachi admitted on Monday. Photo: Bloomberg

Toshiba plans job cuts, asset sale as it expects record loss

Toshiba Corp. unveiled plans for deep job cuts and other restructuring initiatives, including a possible sale of its health-care division, as it projected a record US$4.5 billion loss for the current fiscal year.

The Japanese conglomerate, which has been racked by a big accounting scandal, said Monday that will eliminate 7,800 jobs, cutting its workforce by around 4 percent.

About 6,800 jobs will be cut in the consumer-electronics and appliances unit, while 1,000 positions will be shed in its headquarters operations, the Wall Street Journal reported.

The announcement came as the Toshiba said it expects a net loss of 550 billion yen for the year ending March.

The figure takes into account 230 billion yen in restructuring costs following the accounting scandal. Toshiba said in July that it overstated profit by more than 150 billion yen over seven years.

In a bid to streamline its operations, Toshiba will put its health-care unit on the block, among other initiatives. 

“We admit our steps toward restructuring were behind the curve,” the Journal quoted Toshiba President Masashi Muromachi as saying Monday.

“The damage wouldn’t be this large if we had been able to implement overhaul plans much sooner.”

The company will now focus on businesses that can generate profits and would “consider withdrawals from unprofitable ones if a turnaround is difficult”, Muromachi said.

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