Toshiba to cut 4,000 jobs, as restructuring continues
There's no end yet to the pain at Japanese electronics giant Toshiba; the company has just revealed plans to lose 6% of its total workforce.
Last year, Toshiba delisted from the Tokyo stock exchange after 74 years. In the process it offloaded some parts of the business including the unit making flash memory chips for smartphones.
Now in private hands, Toshiba is focusing on the production of power chips for the electric vehicle (EV) market and plans to spend USD 175.57 million to more than double its capacity and catch up with market leaders.
But the flipside of its new growth strategy is on-going restructuring of its legacy business. Months ago, it axed 5,000 jobs. Now, it's laying off 4,000 more and relocating its offices from central Tokyo to Kawasaki to reduce costs.
The company said that the changes would help it return to “what Toshiba should be,” setting itself a goal of achieving a 10% return on sale, or operating margin, by financial year 2026. In an announcement, Toshiba revealed a 76% drop in net sales between 2022 and 2023, and a 201% drop in net income during the same period.
