In light of the recent financial scandal involving Toshiba’s former CEO, Hisao Tanaka, Toshiba has concluded that it is making record losses this year. According to Toshiba, its fiscal year losses will sum up to be around US$4.53 billion (about RM19.5 billion). Following the gigantic financial loss that Toshiba is facing, the company is planning to cut 5% of its workforce.
Although Toshiba has been producing plenty of good products, the company is still facing financial decline in recent years due to the rise of more competitors in the market. It also doesn’t help that earlier this year, Toshiba allegedly recorded a false profit amounting to US$1.2 billion (about RM5.1 billion). As a result, many of Toshiba’s investors lost faith in the company which ultimately contributed to its financial decline as well.
To put into perspective on how significant a 5% layoff is, it would amount to cutting around 6,800 jobs which puts the total number of layoffs by Toshiba to about 10,000 employees this year alone. However, all hope is not lost for Toshiba. The company’s current CEO, Masashi Muromachi, told the press that Toshiba is currently in the midst of restructuring its workforce. Masashi hopes that the restructure would help Toshiba regain its consumers as well as investors trust in the company.
Despite the financial crisis, Toshiba hasn’t stop producing products for its consumers. Just recently, the company unveiled the Toshiba DynaPad, which is regarded as the world’s thinnest and lightest 12-inch tablet. Hopefully with the introduction of a new CEO and proper planing, Toshiba can once again be its former self.