"Restructuring Drive: Recently Delisted Toshiba to Cut 4,000 Jobs"
Stay updated on the latest business news with Toshiba's restructuring drive! Join us as we discuss the recent announcement by Toshiba to cut 4,000 jobs as part of its restructuring initiative. Gain insights into the factors behind this decision and the potential impact on the company and its employees.
Recently, Toshiba, which has been delisted, announced plans to cut 4,000 jobs as part of its restructuring efforts.
Japan's Toshiba announced on Thursday that it will cut up to 4,000 jobs domestically as part of its accelerated restructuring efforts under new ownership. The industrial conglomerate was delisted in December following a $13 billion takeover by a consortium led by private equity firm Japan Industrial Partners (JIP), marking the end of a tumultuous decade marred by scandal and upheaval. The consortium's efforts to orchestrate a turnaround at Toshiba are regarded as a litmus test for private equity in Japan, a market where such firms were previously dubbed "hagetaka" or vultures due to their aggressive reputation.
The restructuring entails cutting up to 6% of Toshiba's domestic workforce. Additionally, the company announced 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 three years. In Japan, known for its conservative business culture, private equity firms are increasingly viewed as an option for companies looking to divest non-core assets or facing challenges with succession planning.
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