WEB DESK
Japanese industrial giant Toshiba is reportedly considering cutting about 4,000 workers in the country, or around 6 percent of its workforce.
Toshiba has been rebuilding itself since accepting a buyout from investment fund Japan Industrial Partners in December 2023. It has since delisted from stock exchanges in Japan, according to NHK.
Sources familiar with the matter say Toshiba is considering reducing its workforce as it is drawing up a new business plan to be released as early as next month.
The company is set to offer voluntary retirement among other measures to reduce its workers. It plans to decide details through negotiations with the labor union.
Costs related to Toshiba’s delisting total about 2 trillion yen, or some 13 billion dollars. The planned reduction in payroll is part of an effort to substantially reduce its fixed costs to improve its finances.
The company faces the challenge of streamlining its business by selling loss-making units and group companies. It also needs to present a growth strategy for its mainstay infrastructure and energy businesses, reports NHK.