Recently delisted Toshiba to cut 4,000 jobs in restructuring drive
5:41 am Thursday, May 16th, 2024
By Sam Nussey
TOKYO (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, cosmetics firm Shiseido and electronics firm Omron.
(Reporting by Sam Nussey; Editing by Christopher Cushing)
