Breaking News: Toshiba to Cut 4000 Jobs in Japan! Learn how the company’s restructuring under new management will impact its employees and what led to this drastic decision.
Toshiba, a multinational corporation (MNC) in Japan, recently announced that it will quickly complete its restructuring under new management. It will result in an expected loss of up to 4000 domestic jobs. 4000 employees above the age of 50 will be retired from the company.
After a decade of scandal and crisis, Toshiba was taken over in December. This happened as a result of a $13 billion buyout by a private equity firm Japan Industrial Partners (JIP).
This company wanted to turn around Toshiba and was viewed as “hagetaka” or vultures because of its image.
4000 Japanese jobs are at risk
According to reports, Taro Shimada, president of Toshiba, described the redesign as “a necessary thing to do to ensure the company survives for the next 100 years.” Shimada claims that the early retirement plan is aimed at people 50 years of age and beyond. The back-office departments will take care of majority of these job losses.
He also says, by November’s end, the employee elimination should be finished. Since its founding in 1875, Toshiba had numerous difficulties within the company. Nevertheless, in the past ten years we have seen an especially high level of controversy.
Rumous behind Toshiba
It all began with an accounting problem in 2015. Many people believes that the most horrible problem, and the reason behind the sale, was the circulating rumor that management conspired with Japan’s trade ministers to scare away voting shareholders.
The new “revitalization plan”
There will be a revitalization strategy. Four most important parts of the company that operate in the energy and infrastructure sectors will be combined to become “One Toshiba.” The company, which manufactures gadgets and storage technology will invest more in quantum technology, renewable energy equipment, AI items, and EV semiconductors.
Decrease in payroll for all hardworking employees
Toshiba plans to reduce payroll of its existing employees as well. It will merge its two head offices in Kawasaki ( a city in the southwest suburbs of Tokyo) and in central Tokyo. According to its Revitalization Plan this may bring more profit for now. Toshiba also plans to take its operating profit margin of 10% to 20% in the financial year of 2026. This reduction in the number of employee groups will be taken care of by the end of 2024 financial year.
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