Toshiba is the latest company to confirm widespread job cuts as part of a comprehensive restructuring plan under its new owner.
a report of Reutersstates that the Japanese giant will cut up to 4,000 workers, which represents around 6% of its total workforce.
The news comes just months after Toshiba was acquired by a consortium led by private equity firm Japan Industrial Partners (JIP) in a deal valued at around $13 billion.
Toshiba confirms job cuts
In addition to the layoffs, Toshiba has announced plans to move its offices from central Tokyo to Kawasaki (a separate city that is part of the Greater Tokyo area) to control its costs.
The company said the changes would help it return to “what Toshiba should be,” setting a goal of achieving a 10% return on sales, or operating margin, by the 2026 financial year.
In its announcement, Toshiba revealed an alarming downward trend in profitability after a significant increase between 2015 and now, alluding to “becoming[ing] lean and strong” this year, and “prepare[ing] “For medium to long-term growth” next year before achieving that growth in successive years.
Toshiba recently announced a 76% drop in net sales between 2022 and 2023, and a more worrying 201% drop in net income over the same period.
Additionally, the restructuring comes amid a broader trend of job cuts by major Japanese companies. Recent announcements include staff reductions by copier maker Konica Minolta, cosmetics giant Shiseido and electronics company Omron.
The trend isn't just limited to Japan, with 84,000 tech layoffs tracked (via layoffs.fyi) this calendar year alone. Google has been a repeat offender this year, and companies like Apple, Amazon and Microsoft have also cut staff.
