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Business News/ Companies / News/  Toshiba Corp to cut 5,000 jobs in Japan, downsize non-core businesses: Report
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Toshiba Corp to cut 5,000 jobs in Japan, downsize non-core businesses: Report

Toshiba is downsizing non-core businesses and will book a one-time cost of roughly $650 million as a result, the Nikkei reported

Last year, Toshiba had accepted a buyout offer from JIP-led consortium, and the company was delisted from the Tokyo Stock Exchange (TSE) in December. Photo: ReutersPremium
Last year, Toshiba had accepted a buyout offer from JIP-led consortium, and the company was delisted from the Tokyo Stock Exchange (TSE) in December. Photo: Reuters

Toshiba Corp. is planning to cut 5,000 jobs or roughly 7 per cent of its headcount in Japan in a move to accelerate its restructuring, the Nikkei reported.

The Tokyo-based company is downsizing non-core businesses and will book a one-time cost of roughly ¥100 billion ($650 million) as a result, the Nikkei reported.

ALSO READ: Morgan Stanley to slash 13% investment banking jobs in Hong Kong and China

Toshiba, once one of the Japan’s biggest employers, has been trying to cut costs in its operations and focus on its infrastructure and digital technology business.

In recent months, companies including cosmetics brand Shiseido Co., thermometer maker Omron Corp. and photocopier maker Konica Minolta Inc. have announced job cuts. 

Toshiba is compiling its midterm strategy though nothing concrete has been decided, a company representative said in an emailed statement, according to Bloomberg.

Toshiba, which builds nuclear turbines as well as batteries and quantum computing technology, will seek applicants for severance packages, the Nikkei said. 

“The main targets of the job cuts are back-office departments in the head office. The company will seek voluntary retirements," reported Nikkei citing people familiar with the matter.

ALSO READ: McKinsey to cut 360 jobs as client demand slows down, these roles to be affected

Toshiba's domestic payroll stands at around 67,000.

The job cuts, if carried out as planned, would be the largest reduction in manpower since accounting irregularities came to light in 2015 at the company.

“The restructuring plan is a pillar of the Japanese conglomerate's effort to improve its profitability as part of its midterm management plan to be announced in May," said the report.

“The company will begin discussions with its labor union as early as May to determine how many positions to cut in each business unit," it added.

The 149-year old conglomerate was taken private by a Japanese consortium led by private equity manager Japan Industrial Partners.

Last year, Toshiba accepted a buyout offer from JIP-led consortium, and the company was delisted from the Tokyo Stock Exchange (TSE) in December.

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Published: 17 Apr 2024, 06:44 PM IST
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