Nikkei Report... "Mid-term Management Plan to Be Included Next Month"
Toshiba, once one of Japan's leading technology companies, plans to cut about 5,000 employees domestically.
The Nihon Keizai Shimbun (Nikkei) reported on the 17th that Toshiba has begun adjustments to reduce its workforce in Japan by 5,000 employees. According to the report, Toshiba plans to include this reduction plan as part of its profit improvement measures in the mid-term management plan scheduled to be announced next month. This is the largest scale of workforce reduction since the accounting scandal was uncovered in 2015.
Currently, Toshiba's workforce in Japan is about 67,000 employees. Nikkei forecasts that special losses related to severance payments, including voluntary retirement incentives, could reach 100 billion yen (approximately 894.6 billion KRW). However, Nikkei also added that the number of employees to be cut may decrease during negotiations with labor unions starting next month.
Toshiba is a well-known Japanese company that pioneered the world's first notebook computers and semiconductor NAND flash memory, but it faced a crisis due to the 2015 accounting fraud issue and huge losses from its U.S. nuclear power plant subsidiary in 2017. Last year, it was acquired by the Japanese investment fund "Japan Industrial Partners" (JIP) through a stock buyout.
Since then, JIP voluntarily delisted Toshiba from the stock exchange. With the goal of increasing corporate value and relisting within five years, JIP is exploring business restructuring. Toshiba has already sold its semiconductor memory division and currently holds businesses in energy, railroads, infrastructure, and power semiconductor devices.
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