In an effort to improve its financial standing and future prospects, struggling Japanese industrial giant Toshiba has announced plans to cut up to 4,000 jobs as part of a national restructuring program. This decision comes after the company’s shares were delisted in September, leading to privatization by a consortium due to various crises. The staff reduction will be completed by November, with the company offering voluntary early retirement to employees over 50 years old who meet specific criteria.
According to a company spokeswoman, management considered this a difficult decision but believes it is necessary to put Toshiba back on a path towards recovery and growth. While large-scale layoffs are uncommon in Japan, the use of early retirement or voluntary layoff programs is becoming more common.
In addition to the job cuts, Toshiba aims for an operating profit of 380 billion yen ($2.5 billion) and a 10% return on sales in fiscal 2026. The company also plans to relocate its headquarters from Tokyo’s Hamamatsucho area to Kawasaki in the first half of fiscal 2025. These measures are part of Toshiba’s efforts to improve its financial standing and future prospects.
