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 its medium- to long-term business plan in mid-May, which will include details about the worker cuts.
One possible method for reducing the workforce is by consolidating certain sections of Toshiba's many subsidiaries at the Tokyo headquarters. The conglomerate was delisted from the stock exchange in December 2023 after being acquired by Japan Industrial Partners (JIP) in a public tender offer.
Toshiba currently has around 67,000 workers in Japan, spread across numerous subsidiaries involved in various sectors, including social infrastructure, energy, and devices. While the exact number of job cuts is not yet known, sources say it will be the largest reduction since 2001, when Toshiba laid off 17,000 workers due to a downturn in the information technology sector.
Toshiba's annual sales have halved from 7 trillion yen to 3 trillion yen, partly due to the selling off of some business operations. The company recorded a net loss of 107 billion yen for the April to December period last year, mainly due to the poor performance of its hard disk sector.
Toshiba aims to relist on the stock exchange within five years. To improve profitability, the company plans to reduce payroll and reorganize its business structure. Potential growth sectors include energy, social infrastructure, and new businesses leveraging digital technology.
Toshiba has faced several challenges in recent years, including accounting fraud in 2015 and the bankruptcy of its U.S. nuclear power plant unit, Westinghouse Electric Co., in 2017. The company received financial support from overseas investment funds to stay afloat, resulting in a significant portion of its shares being held by foreign investors. This has led to conflicts between activist shareholders and Toshiba's management.