Toshiba has announced that it will cut up to 4,000 jobs domestically as a part of the Japanese conglomerate accelerates restructuring efforts under new ownership. The job cuts represent 6% of Toshiba’s local workforce.
Toshiba delisted from the stock market in December after a $13 billion takeover by a consortium led by Japan Industrial Partners (JIP), essentially ending a decade of challenges for the company, news agency Reuters reported.
Once a giant employer in Japan, Toshiba has been mired with management issues and scandals, including a hefty fine for accounting irregularities and the sale of its memory chip business, Kioxia, to cover nuclear power plant losses.
The consortium’s goal is to improve Toshiba’s performance, which is seen as a test for private equity firms in Japan.
Toshiba plans to move some functions to Kawasaki
The report also says that Toshiba is also planning to move some office functions from central Tokyo to Kawasaki, a city west of the capital. Additionally, Toshiba aims to achieve a 10% operating profit margin within three years.
Private equity firms are becoming a more common option for Japanese companies looking to sell non-essential assets or struggling to find successors, Reuters said.
The report of layoffs at Toshiba comes as several companies in Japan have announced job cuts, including Konica Minolta (photocopiers), Shiseido (cosmetics), and Omron (electronics) in recent months.
The job cuts in Japan are considered a ‘big thing’ as it points to a shift in Japan’s corporate culture, where layoffs were previously uncommon due to strong worker protection laws.
The layoffs come amidst a chronic labour shortage in Japan, as companies struggle to fill open positions. Additionally, factors like rising wages, increased worker mobility, and a growing number of foreign workers are contributing to a changing workplace landscape.
Toshiba delisted from the stock market in December after a $13 billion takeover by a consortium led by Japan Industrial Partners (JIP), essentially ending a decade of challenges for the company, news agency Reuters reported.
Once a giant employer in Japan, Toshiba has been mired with management issues and scandals, including a hefty fine for accounting irregularities and the sale of its memory chip business, Kioxia, to cover nuclear power plant losses.
The consortium’s goal is to improve Toshiba’s performance, which is seen as a test for private equity firms in Japan.
Toshiba plans to move some functions to Kawasaki
The report also says that Toshiba is also planning to move some office functions from central Tokyo to Kawasaki, a city west of the capital. Additionally, Toshiba aims to achieve a 10% operating profit margin within three years.
Private equity firms are becoming a more common option for Japanese companies looking to sell non-essential assets or struggling to find successors, Reuters said.
The report of layoffs at Toshiba comes as several companies in Japan have announced job cuts, including Konica Minolta (photocopiers), Shiseido (cosmetics), and Omron (electronics) in recent months.
The job cuts in Japan are considered a ‘big thing’ as it points to a shift in Japan’s corporate culture, where layoffs were previously uncommon due to strong worker protection laws.
The layoffs come amidst a chronic labour shortage in Japan, as companies struggle to fill open positions. Additionally, factors like rising wages, increased worker mobility, and a growing number of foreign workers are contributing to a changing workplace landscape.