Toshiba to shed 4,000 jobs as part of revitalization plan
(2024/05/17)
- Reference: 1715938335
- News link: https://www.theregister.co.uk/2024/05/17/toshiba_to_shed_4000_jobs/
- Source link:
Toshiba says it will cut up to 4,000 jobs within Japan, a number that accounts for six percent of the company's national workforce, by offering early retirement packages.
The layoffs are being made amid a corporate restructuring that follows a [1]delisting and a $13 billion change of ownership to Japan Industrial Partners.
In addition to trimming the payroll, [2]Toshiba’s Revitalization Plan [PDF] outlines that the company intends to consolidate its two head offices in central Tokyo and Kawasaki, a city on the southwest outskirts, to one in Kawasaki.
[3]
Additionally, Toshiba will look to reduce the number of staff organizations by 20 percent by the end of FY2024 and will target an operating profit margin of ten percent in in FY26.
[4]Toshiba succeeds at selling itself, delisting set for September 27
[5]Japan's Rohm, Toshiba grab $900M in subsidies to boost power semi production
[6]Japan will use AI to find out what bears do in the woods
[7]Japanese and Singaporean devs battle over gamified crowdsourced telco maintenance app
The revitalization plan outlines that four key subsidiaries operating in business areas including energy and infrastructure will be integrated, creating "One Toshiba."
The company, which makes devices and storage tech, will look to place more resources into EV semiconductors, AI products, renewable energy equipment and quantum technology.
[8]
Toshiba president Taro Shimada [9]reportedly called the revamp "a necessary thing to do to ensure the company survives for the next 100 years." According to Shimada, the early retirement plan targets those aged 50 and over, with most job cuts hitting back-office departments. The workforce reduction should be completed by the end of November.
Toshiba was established in 1875, and has since undergone many challenges – but the last decade has been particularly rife with scandal, starting with a [10]2015 accountancy incident. The [11]most egregious issue for many, and the impetus to its sale, was uncofirmed allegations that management colluded with Japan's trade ministers to [12]bully voting shareholders. ®
Get our [13]Tech Resources
[1] https://www.theregister.com/2023/09/21/toshiba_tender_offer_succeeds/
[2] https://www.global.toshiba/content/dam/toshiba/ww/ir/corporate/finance/pdf/tpr20240516e.pdf
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/storage&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZkcqyyCb46g3C5QIpmA2cwAAAMA&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://www.theregister.com/2023/09/21/toshiba_tender_offer_succeeds/
[5] https://www.theregister.com/2023/12/10/rohm_toshiba_japan/
[6] https://www.theregister.com/2024/05/02/japan_ai_bear_detection/
[7] https://www.theregister.com/2024/04/24/japan_telco_app_ip/
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/storage&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZkcqyyCb46g3C5QIpmA2cwAAAMA&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[9] https://mainichi.jp/english/articles/20240516/p2g/00m/0bu/055000c
[10] https://www.theregister.com/2015/07/21/toshiba_ceo_resigns/
[11] https://www.theregister.com/2021/11/29/3d_investments_opposes_toshiba_split/
[12] https://www.theregister.com/2021/06/25/toshiba_chairman_ousted/
[13] https://whitepapers.theregister.com/
The layoffs are being made amid a corporate restructuring that follows a [1]delisting and a $13 billion change of ownership to Japan Industrial Partners.
In addition to trimming the payroll, [2]Toshiba’s Revitalization Plan [PDF] outlines that the company intends to consolidate its two head offices in central Tokyo and Kawasaki, a city on the southwest outskirts, to one in Kawasaki.
[3]
Additionally, Toshiba will look to reduce the number of staff organizations by 20 percent by the end of FY2024 and will target an operating profit margin of ten percent in in FY26.
[4]Toshiba succeeds at selling itself, delisting set for September 27
[5]Japan's Rohm, Toshiba grab $900M in subsidies to boost power semi production
[6]Japan will use AI to find out what bears do in the woods
[7]Japanese and Singaporean devs battle over gamified crowdsourced telco maintenance app
The revitalization plan outlines that four key subsidiaries operating in business areas including energy and infrastructure will be integrated, creating "One Toshiba."
The company, which makes devices and storage tech, will look to place more resources into EV semiconductors, AI products, renewable energy equipment and quantum technology.
[8]
Toshiba president Taro Shimada [9]reportedly called the revamp "a necessary thing to do to ensure the company survives for the next 100 years." According to Shimada, the early retirement plan targets those aged 50 and over, with most job cuts hitting back-office departments. The workforce reduction should be completed by the end of November.
Toshiba was established in 1875, and has since undergone many challenges – but the last decade has been particularly rife with scandal, starting with a [10]2015 accountancy incident. The [11]most egregious issue for many, and the impetus to its sale, was uncofirmed allegations that management colluded with Japan's trade ministers to [12]bully voting shareholders. ®
Get our [13]Tech Resources
[1] https://www.theregister.com/2023/09/21/toshiba_tender_offer_succeeds/
[2] https://www.global.toshiba/content/dam/toshiba/ww/ir/corporate/finance/pdf/tpr20240516e.pdf
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/storage&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZkcqyyCb46g3C5QIpmA2cwAAAMA&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://www.theregister.com/2023/09/21/toshiba_tender_offer_succeeds/
[5] https://www.theregister.com/2023/12/10/rohm_toshiba_japan/
[6] https://www.theregister.com/2024/05/02/japan_ai_bear_detection/
[7] https://www.theregister.com/2024/04/24/japan_telco_app_ip/
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/storage&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZkcqyyCb46g3C5QIpmA2cwAAAMA&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[9] https://mainichi.jp/english/articles/20240516/p2g/00m/0bu/055000c
[10] https://www.theregister.com/2015/07/21/toshiba_ceo_resigns/
[11] https://www.theregister.com/2021/11/29/3d_investments_opposes_toshiba_split/
[12] https://www.theregister.com/2021/06/25/toshiba_chairman_ousted/
[13] https://whitepapers.theregister.com/
Poison
That makes it look like the 4,000 worker were the poison.
It's almost always "we'll get rid of the workers and company will be good again". Totally nothing to do with the board, management, shareholders putting pressure. It's the workers, the scroungers, eating away the profits...