Toshiba Plans Major Layoffs: 5,000 Jobs to Go

Toshiba announces plans to cut 5,000 jobs, about 7% of its workforce in Japan, primarily in back-office roles.

  • Toshiba announces plans to cut 5,000 jobs, about 7% of its workforce in Japan, primarily in back-office roles.
  • The move aims to streamline operations and consolidate business units after the company’s delisting and acquisition by Japan Industrial Partners (JIP).
  • Toshiba’s focus includes stabilizing finances, investing in data-centric strategies, and innovating in AI and quantum technology.

Toshiba is set to undergo significant workforce reductions, with plans to cut around 5,000 jobs, mainly targeting back-office positions in its Japanese headquarters. This marks the largest job cut since the 2015 accounting scandal. The move comes as part of Toshiba’s efforts to streamline operations and consolidate its energy, infrastructure, devices, and IT business units into the main headquarters, aiming for more efficient operations.

Financially, the layoffs are expected to result in a loss of approximately 100 billion yen ($646 million), attributed to retirement benefits and outplacement services. After its delisting from the Tokyo Stock Exchange and acquisition by Japan Industrial Partners (JIP), Toshiba is under pressure to stabilize its finances and repay debts incurred during the buyout. Despite short-term challenges, Toshiba is focusing on long-term strategic growth, with plans to invest in data-centric strategies and innovations in AI and quantum technology. The company’s collaboration with JIP aims to potentially relist Toshiba’s shares within the next five years, capitalizing on restructuring efforts and technological advancements. The upcoming discussions with Toshiba’s labor union will be crucial in finalizing the details of the job cuts, which are expected to play a pivotal role in Toshiba’s midterm management plan.