Japan’s Toshiba to cut 4K jobs in restructuring efforts

Japan’s Toshiba Corporation announced plans to cut up to 4,000 jobs domestically as part of an accelerated restructuring effort under its new ownership, the NIKEEI Asia reported on Thursday.

Toshiba recently announced a major workforce reduction, cutting approximately six per cent of its employees in Japan.

This decision follows the company’s delisting in December 2023, after a $13 billion takeover by a consortium led by private equity firm Japan Industrial Partners (JIP).

The acquisition marked the end of a challenging decade for Toshiba, marred by scandals and financial troubles.

JIP’s efforts to revitalise Toshiba are seen as a crucial test for private equity firms in Japan. Traditionally viewed with skepticism due to aggressive takeover tactics, PE firms are gradually gaining acceptance as potential partners for companies seeking to streamline operations or address succession challenges.

Toshiba’s restructuring plan includes relocating some head office functions from central Tokyo to Kawasaki and aims to achieve a 10 per cent operating profit margin in the next three years.

The company joins other Japanese companies in recent job cuts due to economic challenges and market changes. Konica Minolta, Shiseido, and Omron have also reduced their workforce.