Toshiba to axe 7,800 jobs as it predicts a $4.5bn loss

21 Dec 2015

Toshiba was rocked by an accountancy scandal whereby it overstated its profits by $2bn

Toshiba, which has been hit by a major accounting scandal, is to cut 7,800 jobs or 30pc of its workforce, and expects a loss of $4.5bn this year.

Toshiba was rocked this year by one of Japan’s biggest accounting scandals.

The company is to cut 7,800 jobs and expects to lose $4.5bn this year.

Toshiba is hoping to make good its losses by selling off its healthcare business.

The Japanese conglomerate is also seeking investors for its semiconductor business, as well as its Westinghouse nuclear subsidiary.

Toshiba is also in talks with Fujitsu about a possible merger of its personal computer division.

Under the Toshiba Revitalisation Plan, it is to cut 6,800 jobs across its consumer electronics business.

It is also cutting a further 1,000 in its headquarters group.

Accounting scandal at Toshiba

Toshiba is expecting a loss of $4.5bn following an accounting scandal that saw it overstating its profits over a seven-year period by over $2bn.

The company’s problems aren’t being helped by an over-saturated consumer electronics landscape and sales are expected to plunge 7pc this year.

This is being exacerbated by losses in its semiconductor unit due to a slowdown in China and weak global smartphone sales.

Toshiba is selling off its TV manufacturing plant in the US as well as its Ome Complex in Tokyo, which makes TVs and PCs.

Toshiba said it will downsize TV sales to 600,000 per year. It hopes to generate a profit by concentrating on high-end models.

Toshiba image via Shutterstock

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years