In the aftermath of a massive accounting scandal, Toshiba will cut thousands of jobs, and lose billions.
This has been a turbulent year for Toshiba. In July, the company's CEO Hisao Tanaka resigned after a massive scandal was unearthed that showed a numbers fudge of over $1.2 billion in overstated profits over a period of several years. This caused shares to plummet, and threw the company into chaos. A handful of other resignations in the company's administration took place, followed by massive restructuring. Today, Toshiba has published a report about what it is going to do next moving into 2016, from executive shuffling, to rearranging (or even cutting completely) portions of its operations, and thousands of job cuts.
In response to its accounting scandal, Toshiba has released a "Revitalization Action Plan" which prescribes what the company will do next following this significant stumble. One of the more significant components of this document is a plan that its "Lifestyle business segment will reduce its headcount by 6.800 employees, approximately 30% of its global total, by March 31, 2016." Contractors are also being cut, and after all is said and done, analysts are expecting over 10,000 jobs to be axed in total. Other restructuring, both for employees and executives alike, are outlined in the report, as well as new plans for adhering to internal reviews, business structure, and more. Total company operations is hoped to see a 20 billion yen shrinkage within the next three months.
This has been a turbulent year for Toshiba. In July, the company's CEO Hisao Tanaka resigned after a massive scandal was unearthed that showed a numbers fudge of over $1.2 billion in overstated profits over a period of several years. This caused shares to plummet, and threw the company into chaos. A handful of other resignations in the company's administration took place, followed by massive restructuring. Today, Toshiba has published a report about what it is going to do next moving into 2016, from executive shuffling, to rearranging (or even cutting completely) portions of its operations, and thousands of job cuts.
In response to its accounting scandal, Toshiba has released a "Revitalization Action Plan" which prescribes what the company will do next following this significant stumble. One of the more significant components of this document is a plan that its "Lifestyle business segment will reduce its headcount by 6.800 employees, approximately 30% of its global total, by March 31, 2016." Contractors are also being cut, and after all is said and done, analysts are expecting over 10,000 jobs to be axed in total. Other restructuring, both for employees and executives alike, are outlined in the report, as well as new plans for adhering to internal reviews, business structure, and more. Total company operations is hoped to see a 20 billion yen shrinkage within the next three months.
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