Toshiba cutting thousands of jobs as restructuring continues

Date:
Fri, 17 May 2024 09:43:15 +0000

Description:
Widespread job cuts announced by Toshiba, with up to 4,000 workers expected
to depart under new cost-cutting measures.

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Toshiba is the latest company to confirm widespread job cuts as part of a comprehensive restructuring plan under its new ownership.

A report from Reuters claims the Japanese giant will cut up to 4,000 workers, representing around 6% of its total workforce.

The news comes just months after Toshiba was acquired by a consortium led by the private equity firm Japan Industrial Partners (JIP) in a deal worth
around $13 billion. Toshiba confirms job cuts

In addition to the layoffs, Toshiba has announced plans to relocate its offices from central Tokyo to Kawasaki a separate city that forms part of the Greater Tokyo area in order to rein in its 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 its announcement, Toshiba revealed a frightening downward trend on profitability following a significant upward spike between 2015 and now, alluding to becom[ing] lean and strong this year, and prepar[ing] for medium- to long-term growth next year before realizing that growth in the successive years.

Toshiba recently announced a 76% drop in net sales between 2022 and 2023, and a more concerning 201% drop in net income during the same period.

Moreover, the restructuring comes amidst a broader trend of job cuts by major Japanese companies. Recent announcements, include workforce reductions by photocopier manufacturer Konica Minolta, cosmetics giant Shiseido, and electronics company Omron.

The trend isnt just limited to Japan, with 84,000 tech redundancies tracked (via layoffs.fyi ) this calendar year alone. Google has been a repeat
offender this year, with the likes of Apple, Amazon and Microsoft also
cutting headcounts. More from TechRadar Pro Weve rounded up the best job
sites and best recruitment platforms AWS plans hundreds of job cuts as Amazon downsizing continues Check out the best business laptops around right now



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Link to news story: https://www.techradar.com/pro/toshiba-cutting-thousands-of-jobs-as-restructuri ng-continues


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