Toshiba to Cut 4,000 Jobs in Domestic Restructuring
Toshiba, the Japanese industrial conglomerate, announced plans to cut up to 4,000 jobs domestically as part of a restructuring effort under its new ownership. The company delisted in December 2022 following a $13 billion takeover by a consortium led by private equity firm Japan Industrial Partners (JIP).
This restructuring marks a significant step in Toshiba's turnaround strategy after a decade of scandals and financial difficulties. The job cuts represent approximately 6% of the company's domestic workforce. Additionally, Toshiba will relocate its office functions from central Tokyo to Kawasaki and aim for an operating profit margin of 10% within three years.
The consortium's efforts to revive Toshiba are closely watched as a test case for private equity in Japan. Traditionally viewed with skepticism due to their aggressive tactics, private equity firms are increasingly seen as a viable option for companies seeking to divest non-core assets or address succession challenges.
Toshiba's job cuts are part of a broader trend in Japan, where several companies have announced workforce reductions in recent months. This includes photocopier maker Konica Minolta, cosmetics firm Shiseido, and electronics firm Omron.