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Toshiba Slashing CE, Appliance Divisions - Twice

Toshiba Slashing CE, Appliance Divisions

Cutting 4% of its workforce
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Toshiba said it plans to cut 6,800 CE and appliance jobs and 1,000 headquarters posts in anticipation of a $4.5 billion annual loss.

Toshiba said it plans to cut 6,800 CE and appliance jobs and 1,000 headquarters posts in anticipation of a $4.5 billion annual loss.

The hemorrhaging stems in part from last summer’s massive accounting scandal, in which CEO Hisao Tanaka and half the board were dismissed for inflating Toshiba’s profits by $1.2 billion since 2008.

The projected loss includes about $1.9 billion in restructuring costs in the wake of the irregularities, and also reflects sales declines in the company’s CE, nuclear energy and memory chip operations.

Chairman Masashi Muromachi, who stepped in as interim president following the scandal, said the company would consider getting out of any unprofitable operations whose turnarounds were not promising.

Toshiba has already put its healthcare division on the block; sold its CMOS image sensor business to Sony; is considering merging its PC unit with Fujitsu; and last year licensed off its North American TV business to Taiwan’s Compal Electronics amid blistering competition from Korean and Chinese manufacturers.

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