- In a bid to accelerate restructuring efforts, Toshiba announces plans to cut up to 4,000 jobs domestically following its delisting and acquisition by a consortium led by Japan Industrial Partners (JIP).
- Toshiba unveils a strategic plan to divide into three independent companies by spinning off its energy and infrastructure business as well as its device and storage business.
- Amid ongoing tensions between Toshiba management and overseas shareholders, a governance report reveals unethical behavior among executives, including collusion with Japan’s trade ministry.
Recently delisted Toshiba, now under new ownership, is set to cut up to 4,000 jobs in Japan as part of its restructuring efforts. The industrial conglomerate aims to split into three independent companies and focus on enhancing shareholder value.
Restructuring drive
Toshiba to cut 4,000 jobs amid accelerated revamp In a bid to accelerate restructuring efforts, Toshiba announces plans to cut up to 4,000 jobs domestically following its delisting and acquisition by a consortium led by Japan Industrial Partners (JIP). This move, amounting to 6% of Toshiba’s domestic workforce, aims to streamline operations and achieve a 10% operating profit margin target within three years.
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Business breakup strategy
Toshiba unveils a strategic plan to divide into three independent companies by spinning off its energy and infrastructure business as well as its device and storage business. This initiative, born out of a comprehensive review post a corporate governance scandal, seeks to enhance focus, decision-making agility, and cost efficiency, with the reorganisation expected to be completed by the second half of the 2023 financial year.
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Governance report findings
Amidst shareholder tension amid ongoing tensions between Toshiba management and overseas shareholders, a governance report reveals unethical behavior among executives, including collusion with Japan’s trade ministry. The report underscores the conglomerate’s challenges stemming from its cautious approach towards foreign investment funds and lack of a productive relationship with them, leading to a 1% decline in Toshiba’s shares post-announcement.
