Massive Changes Underway at Toshiba, Job Cuts, Toshiba TEC Sale Possible
Fortune reports that Toshiba Corporation of Japan will cut nearly 7,000 consumer-electronics jobs after a $1.3 billion accounting scandal. The overhaul is said to be an attempt to streamline the conglomerate into a company focused on computer chips and nuclear energy.
Toshiba also reports that it will sell its television-manufacturing plant in Indonesia. It also says that job eliminations cutting across its entire PC business to its nuclear-energy company could be over 10,000, and would include previously announced cuts as well as employees seeking voluntary early retirement.
The company expects to report a net loss of around 550 billion yen ($4.53 billion) for its fiscal year ending in March 2016.
“By implementing this plan, we would like to regain the trust of all stakeholders including shareholders and transform ourselves into a robust business,” the company said.
Reuters also reported that Japan’s financial regulator has fined Toshiba’s accounting firm, an Ernst & Young affiliate, 2.1 billion yen ($17.4 million) after the firm’s audit of Toshiba accounts failed to spot irregularities in the country’s worst accounting scandal in years. The Japan Financial Services Agency (FSA) said it would also suspend Ernst & Young ShinNihon from taking on new business contracts for three months.
Note, that Toshiba America Business Solutions, which, as we reported in August 2015, is not involved with the Toshiba Corporation’s accounting troubles, as TABS is an independent operating company of office-equipment maker Toshiba Tec Corporation (TTEC), which has not been involved with the accounting troubles being experienced by Toshiba Corporation (Toshiba Tec is also operated independently from Toshiba Corporation). However, The Japan Times has reported that Toshiba may sell Toshiba Tec.