Toshiba Plans Major Layoffs to Relist on Tokyo Stock Exchange
Toshiba Corporation is planning to lay off thousands of workers in an effort to relist its shares on the Tokyo Stock Exchange. The company will announce the details of the job cuts in its medium- to long-term business plan, which is scheduled to be released in mid-May.
One possible method for reducing the workforce is by consolidating certain sections of Toshiba's many subsidiaries at the Tokyo headquarters. The company currently employs approximately 67,000 workers in Japan, spread across a vast number of subsidiaries involved in diverse industries ranging from social infrastructure to energy and devices.
While the exact number of job cuts has not been disclosed, sources indicate that it will be the largest reduction since 2001, when Toshiba laid off approximately 17,000 workers following a major downturn in the information technology sector.
Toshiba's annual sales have shrunk from around 7 trillion yen to roughly 3 trillion yen, partly due to the divestiture of certain business operations. For the period from April to December 2023, the company recorded a net loss of 107 billion yen, primarily attributed to the underperformance of its hard disk sector.
The company aims to relist on the stock exchange within five years. To improve profitability, Toshiba plans to reduce payroll and restructure its business operations. The company is focusing on energy and social infrastructure as potential growth sectors, while also exploring new business opportunities leveraging its digital technology expertise.
Toshiba has faced several major management scandals in the past decade, including an accounting fraud disclosed in 2015. Additionally, its U.S. nuclear power plant unit, Westinghouse Electric Co., filed for bankruptcy in 2017.
To stay afloat, Toshiba received approximately 600 billion yen from 60 overseas investment funds. As a result, a significant portion of the company's shares are now held by overseas investors. This has led to intensifying conflicts between activist shareholders and Toshiba's management.