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Friday, May 24, 2024

Newly Privatized Toshiba to Cut 4,000 Jobs as Part of Restructuring

On Thursday, Japan’s Toshiba announced plans to reduce its domestic workforce by up to 4,000 jobs as part of an accelerated restructuring effort following its delisting in December.

The industrial conglomerate was acquired in a $13 billion takeover led by private equity firm Japan Industrial Partners (JIP), marking the conclusion of a tumultuous decade marked by scandals and instability.

The consortium’s focus on revitalizing Toshiba is viewed as a crucial test for private equity in Japan, which has historically been associated with a predatory reputation, often referred to as “hagetaka” or vultures.

Toshiba said it would relocate office functions from central Tokyo to Kawasaki, west of the capital, and target an operating profit margin of 10% in three years.

In Japan, which is known for its conservative business culture, PE firms are increasingly seen as an option for companies disposing of non-core assets or lacking succession candidates.

A wave of companies have announced job cuts in recent months including photocopier maker Konica Minolta (4902.T), cosmetics firm Shiseido (4911.T), opens new tab and electronics firm Omron (6645.T).

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