Japanese conglomerate Toshiba has revealed plans to slash up to 4,000 jobs domestically. The announcement comes as part of an accelerated overhaul under new ownership following the company’s delisting in December.
Toshiba, once a titan in the Japanese corporate landscape, underwent a USD 13 billion takeover led by a consortium spearheaded by private equity firm Japan Industrial Partners (JIP). This takeover marked the culmination of a tumultuous decade marred by scandal and internal upheaval.
The consortium’s endeavours to revitalise Toshiba are being closely watched as a litmus test for the role of private equity in Japan. Historically, private equity firms have been dubbed “hagetaka” or vultures due to their aggressive reputation in the business world. The restructuring initiative, which amounts to approximately 6 per cent of Toshiba’s domestic workforce, signifies a concerted effort to streamline operations and improve profitability.
In addition to the workforce reduction, Toshiba has outlined plans to relocate office functions from central Tokyo to Kawasaki, situated west of the capital. This strategic move is indicative of the company’s broader efforts to rationalise its operations and cut costs. Moreover, Toshiba has set an ambitious target of achieving a 10 per cent operating profit margin within a span of three years.
