Japan’s Multinational, Toshiba, to Cut 4,000 Jobs Under New Ownership

Toshiba Corporation, a prominent Japanese multinational conglomerate, has announced plans to cut up to 4,000 jobs domestically as part of its ongoing restructuring efforts.

This move follows Toshiba’s delisting from Japanese stock exchanges in December 2023 following a $13 billion (¥2 trillion) takeover by a consortium led by Japan Industrial Partners (JIP).

“It was a tough decision for the management to make. But we believe these measures are essential to putting Toshiba back on the trajectory of recovery and growth,” a company spokesperson said.

The Japanese giant operates in various sectors, including electronics, energy systems, infrastructure, and digital solutions.

The job cuts, which will primarily affect employees aged 50 or above through voluntary early retirement, aim to reduce costs and streamline operations. Toshiba currently employs around 106,648 people globally. The company plans to relocate its head office from central Tokyo to Kawasaki and is targeting an operating profit margin of 10% within three years.

Toshiba has been navigating a series of crises, including a significant accounting scandal in 2015 and substantial losses from its US nuclear subsidiary, Westinghouse. These challenges have led to various restructuring attempts and, ultimately, the decision to accept the takeover bid by the JIP-led consortium.

This restructuring effort is part of a trend among Japanese companies, including Konica Minolta, Shiseido, and Omron, which has also announced job cuts in recent months as they adapt to changing market conditions and seek to improve operational efficiency.

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