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Toshiba to Cut 4,000 Jobs Amid Restructuring After US$13B Takeover by Private Equity-Led Consortium

Updated: May 23

Toshiba to cut up to 4,000 jobs as part of its restructuring efforts. Relocation of office functions from central Tokyo to Kawasaki. Aim to achieve a 10% operating profit margin within three years.

The company was delisted in December following a US$13 billion takeover by a consortium led by private equity firm Japan Industrial Partners (JIP). This decision marks a significant step in Toshiba's journey to recover from a decade of scandal and upheaval.


The consortium's efforts to turn around Toshiba are being closely watched as a test for private equity in Japan. Historically, private equity firms were viewed as "hagetaka" or vultures due to their aggressive reputation. However, the increasing acceptance of PE firms as a viable option for companies disposing of non-core assets or facing succession challenges is changing the perception in Japan's conservative business culture.


The job cuts at Toshiba represent approximately 6% of its domestic workforce. In addition to the workforce reduction, the company also plans to relocate office functions from central Tokyo to Kawasaki, located west of the capital. Toshiba aims to achieve an operating profit margin of 10% within the next three years.


Toshiba is not alone in its restructuring efforts. Several other companies in Japan have recently announced job cuts, including Konica Minolta, a photocopier maker, Shiseido, a cosmetics firm, and Omron, an electronics company. These moves reflect the ongoing challenges faced by businesses in adapting to changing market dynamics and the need to streamline operations.

 
  • Toshiba to cut up to 4,000 jobs as part of its restructuring efforts

  • Relocation of office functions from central Tokyo to Kawasaki

  • Aim to achieve a 10% operating profit margin within three years


Source: REUTERS

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