Toshiba to slash 4K jobs in domestic workforce in restructuring efforts
Date
5/16/2024 5:55:12 AM
(MENAFN) Toshiba, the renowned Japanese electronics company, revealed its strategy to streamline operations by slashing 4,000 jobs within its domestic workforce. This move signifies an escalated effort towards restructuring since its Acquisition under new ownership. The job cuts are primarily slated for employees aged 50 or above, who will be offered early retirement packages as part of the restructuring initiative.
In addition to the workforce reduction, Toshiba aims to enhance cost-efficiency by consolidating four subsidiary companies into its main entity. This consolidation strategy is devised to trim operational expenses and foster a turnaround in its business performance. Moreover, the company disclosed plans to shift its office functions from Tokyo to Kawasaki, further aligning its operational footprint with strategic objectives.
Under the leadership of its new ownership consortium, led by Japan Industrial Partners, Toshiba is focused on achieving a significant operational milestone. The company aspires to attain an operating profit margin of 10 percent within a span of three years, indicative of its commitment to revitalizing its financial health and fostering sustained growth.
The announcement comes in the wake of Toshiba's delisting from the stock exchange in March 2023. This move followed a tumultuous period for the company, marked by various challenges, including an accounting scandal. The subsequent buyout offer, amounting to 2 trillion yen (USD13 billion), signified a pivotal turning point in Toshiba's corporate trajectory, setting the stage for comprehensive restructuring efforts under its new ownership consortium.
MENAFN16052024000045015839ID1108220978
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.