Newly privatised Toshiba to cut 4,000 jobs in restructuring drive
16/05/2024 09:00
By Sam Nussey
TOKYO, May 16 (Reuters) - Japan's Toshiba said on
Thursday it will cut up to 4,000 jobs domestically as the
industrial conglomerate accelerates restructuring under new
ownership.
Toshiba delisted in December due to a $13 billion takeover
by a consortium led by private equity firm Japan Industrial
Partners (JIP), capping a decade of scandal and upheaval.
The consortium's efforts to engineer a turnaround at Toshiba
are seen as a test for private equity in Japan, which used to be
seen as "hagetaka" or vultures due to its rapacious reputation.
Toshiba said it would relocate office functions from central
Tokyo to Kawasaki, west of the capital, and target an operating
profit margin of 10% in three years.
In Japan, which is known for its conservative business
culture, PE firms are increasingly seen as an option for
companies disposing of non-core assets or lacking succession
candidates.
A wave of companies have announced job cuts in recent months
including photocopier maker Konica Minolta 4902.T , cosmetics
firm Shiseido 4911.T and electronics firm Omron 6645.T .
(Reporting by Sam Nussey; Editing by Christopher Cushing)
((sam.nussey@tr.com;))