- Japan’s Toshiba said it will cut up to 4000 jobs domestically as the industrial conglomerate accelerates restructuring under new ownership on Thursday.
- Toshiba delisted in December due to a $13 billion takeover by a consortium led by private equity firm Japan Industrial Partners (JIP), capping a decade of scandal and upheaval.
- The consortium’s endeavors to orchestrate a revival at Toshiba are regarded as a litmus test for private equity in Japan, a market that was once synonymous with the term “hagetaka” or vultures, owing to its aggressive image.
Toshiba announced plans to slash up to 4,000 jobs in Japan as part of its accelerated restructuring efforts following a $13 billion takeover by a consortium led by the private equity firm Japan Industrial Partners (JIP). The delisting of Toshiba in December marked the culmination of a decade marred by scandal and turbulence.
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Toshiba delistes after 74 years
Toshiba was delisted in December after 74 years on the Tokyo exchange, following a and scandal that brought down one of Japan’s biggest brands and ushered in a buyout and an uncertain future.
The conglomerate is being taken private by a group of investors led by private equity firm Japan Industrial Partners (JIP) which also includes financial services firm Orix, utility Chubu Electric Power , and chipmaker Rohm.
In Japan, which is known for its conservative business culture, PE firms are increasingly seen as an option for companies disposing of non-core assets or lacking succession candidates.
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Restructure and lay offs
The restructuring amounts to up to 6% of Toshiba’s domestic workforce. The company also said it would relocate office functions from central Tokyo to Kawasaki, west of the capital, and target an operating profit margin of 10% in three years.
A wave of companies has announced job cuts in recent months including photocopier maker Konica Minolta, cosmetics firm Shiseido, and electronics firm Omron.
