Recently delisted Toshiba to cut 4,000 jobs in restructuring drive (updated)
16/05/2024 10:35
(Adds details on job cuts in paragraph 4)
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.
The restructuring amounts to up to 6% of Toshiba's domestic
workforce. The company also 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;))