Saturday, January 28, 2017

Toshiba Predicts $4.5B Loss, Plans To Fire 7,000 Employees

It looks like Toshiba is in some serious trouble right now. The company says it will post a $4.5 billion loss and eliminate more than 7,700 jobs.

Under the "Toshiba Revitalization Action Plan," the Japanese conglomerate will axe 6,800 jobs in its consumer electronics business, which is roughly 30 percent of the workforce, by 31 March 2016. In addition, "indirect" employees -- such as contractors -- will be axed, bringing labor costs down further. The company also intends to slash operating costs in the PC business and re-align the company away from consumer products in favor of the enterprise market, where "further global demand is expected" in the Japanese and United States markets.