Toshiba Corp says it will cut 7000 consumer electronics jobs as a result of its $1.3 billion accounts scandal, focusing the company on chips and nuclear energy.
Toshiba has also stated it will sell of its TV manufacturing plant in Indonesia, and that ultimately more than 10,000 jobs will be cut across the entire company, including previously-announced cuts, as well as employees who are seeking voluntary early retirement.
As a result of its restructuring costs, including the sale of TV plant, Toshiba says it expects a net loss of around 55 billion yen ($4.53 billion) in the financial year ending in March.
“By implementing this plan, we would like to regain the trust of all stakeholders including shareholders and transform ourselves into a robust business”, Toshiba said in a statement.
The Japanese company already confirmed in August that profits were overstated going back to 2009/2009 by more than 155 billion yen. It also reported a 37.8 billion yen net loss for the last financial year.
Back in July this year, an independent accounting probe said the company suffered from dysfunctional governance and a culture that discouraged employees from questioning superiors.
Since the news of its accounting problems broke in April, Toshiba’s stock has fallen around 40 percent. The huge scandal and earnings statements have since highlighted weakness across many of its businesses. Analysts have said that the planned restructuring was long overdue.
Toshiba launched the world’s first mass market laptop in 1985, but its consumer electronics businesses have since dwindled partly due to price competition with rivals in Asia.
The 140-year-old company is however still very influential in Japanese business, and many of the company’s executives have had key advisory roles in government.
Larry Banks is a keen follower of technology and finance. He has worked for a variety of online publications, writing about a diverse range of topics including mobile networks, patents, and Internet video delivery technologies.