Toshiba’s financial struggles have reached breaking point, leading
to a restructuring effort which will see thousands lose their jobs
and a loss of $4.5 billion over the fiscal year.[…] In a
punishing effort to keep the company afloat, Toshiba executives
have revealed plans to shed businesses, streamline corporate
practices and bring down operating costs.
Under the “Toshiba Revitalization Action Plan,” the Japanese
conglomerate will axe 6,800 jobs in its consumer electronics
business, which is roughly 30 percent of the workforce, by 31
March 2016. In addition, “indirect” employees — such as
contractors — will be axed, bringing labor costs down
In September, Toshiba admitted to overstating its profits by
almost $2 billion over the past seven years in an accounting
scandal which was caused by unit managers overstating profits in
order to reach corporate targets.
$2 billion in accounting fraud followed by billions more in losses this year — really does seem like a company on the brink.