Toshiba, the Japanese multinational conglomerate, is considering a significant reduction in its workforce in Japan by cutting around 5,000 positions, which will affect roughly 7% of its domestic staff. The company plans to focus on downsizing back-office roles in its headquarters and implement the reduction through voluntary retirement schemes. This would be the largest downsizing since the accounting scandal in 2015.
The move is expected to incur a loss of about ¥100 billion ($646 million), covering expenses such as special retirement packages and outplacement services. The restructuring is part of Toshiba’s effort to streamline its operations, consolidating its energy, infrastructure, devices, and IT divisions into its main headquarters to achieve greater efficiency and synergy.
Following its delisting from the Tokyo Stock Exchange in December, Toshiba has faced significant pressure to stabilise its financial position. The company is focusing on both immediate financial recovery and long-term strategic expansion. Recently, Toshiba inaugurated a new research and development centre to propel new technologies forward.
Toshiba is known for manufacturing electronics, semiconductors, home appliances, and infrastructure systems. It has a diverse range of products and services, including laptops, televisions, air conditioners, refrigerators, washing machines, nuclear power plants, medical equipment, and industrial machinery. The company has faced several challenges in recent years, including financial difficulties and corporate governance issues, leading to restructuring efforts and strategic changes, such as selling off certain business units and focusing on core areas.
