Toshiba Predicts $4.5 Billion Loss, Plans to Fire 7,000 Employees

Charlie Osborne, reporting for ZDNet:

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 further. […]

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.

★ Monday, 21 December 2015