Christmas is supposed to be a magical time of year. We all give each other presents, and spend time with family. Sure it can be stressful sometimes, but it’s something most of us look forward to.
That is unless you work for Toshiba. Then your holiday just became, for lack of a better term, really crappy.
That is because the company decided, only a few days before Christmas, to announce massive layoffs, revealing that it will be cutting 30 percent of its consumer electronics staff, or 6,800 people, by the end of March 2016.
These cuts come amid a major restructuring of the company, or what is calling a “”revitalization action plan.” That includes shifting its PC business to enterprise “where further global demand is expected.” That means specific focus on Japan the United States.
It will also be selling off its TV manufacturing plant in Indonesia, shifting to the same brand-licensing model it currently employs in Europe and North America, and will soon be implimenting in China. The company is downsizing its television business in Japan as well.
Toshiba also revealed that it will be downsizing its home appliances business, ending sales of its washing machines around the world. The company is also looking to sell off its health device division as well.
The company is also gutting its executive ranks, laying off 1,000 people, and saving 20 billion yen ($165 million) in the process. That means that at least 7,800 jobs are now guaranteed to be lost in the next three months.
Happy holidays!
This is terrible news for the company, and everyone who works there, but it’s not really a shock considering how 2015 has gone for Toshiba.
In July it saw a slew of executives, including president and CEO Hisao Tanaka, vice-chairman Norio Sasaki and former president Atsutoshi Nishida, all resign following reports of the company misreporting its earnings over the course of six years, to the tune of 152 billion yen ($1.2 billion).
Chairman Masashi Muromachi took over the role of interim CEO.
Major job cuts, and a huge scandal, and yet the bad news doesn’t even end there, as the company is also forecasting a record 550 billion yen ($4.5 billion) loss for the current fiscal year.
But as bad as things are at the company, I still don’t understand why it couldn’t have waited just a little longer to break this news to not ruin everyone’s holiday.
Shares of Toshiba took a big hit on Tuesday, dropping over 12 percent, losing $31.30 a share.
(Image source: haikudeck.com)
