Toshiba announces major job cuts
May 17, 2024
Toshiba Corp. has announced plans to cut approximately 5,000 jobs as part of its latest restructuring efforts.
This workforce reduction represents about 7% of its domestic headcount and is aimed at streamlining operations and improving profitability. The company, which has recently been delisted from the Tokyo Stock Exchange after a buyout by a consortium led by Japan Industrial Partners, will primarily target back-office departments at its headquarters for these cuts.
According to Mint, the job reductions are expected to be executed through voluntary retirements and will incur a one-time cost of around ¥100 billion (approximately $650 million)? (Business Guardian)?. This marks the largest downsizing move by Toshiba since the accounting scandal that rocked the company in 2015.
Toshiba’s restructuring is part of a broader strategy to focus on its core businesses, including infrastructure and digital technology, while shedding non-core operations. This initiative aligns with similar trends in Japan, where companies like Shiseido, Omron, and Konica Minolta have also announced significant job cuts recently?, Mint reported?.
The restructuring comes at a critical time for Toshiba as it navigates a challenging business environment and seeks to enhance its competitiveness in key sectors. Business Today said that the company plans to engage in discussions with its labour union to finalise the specifics of the job cuts across different business units?.
Categories : City News
Tags : Business Job Cuts Restructuring Toshiba
