Toshiba Cuts 6,800 Employees In Wake Of Embarrassing Accounting Scandal

Following a $1.2 billion accounting scandal that involved fraudulent reporting of fake profits over a seven-year period, Toshiba has gone into a restructuring mode as it attempts to pick up the pieces and regain the trust of its customers and investors. Part of that plan includes the termination of some 6,800 employees.

That's nearly a third -- 30 percent, to be exact -- of Toshiba's global workforce. Toshiba hopes to complete the headcount reduction by the end of March next year. Among the job cuts will be around 1,000 corporate jobs as Toshiba looks to "slim down corporate staff functions." As is typically the case in these scenarios, the goal for Toshiba is to streamline its operations with an eye on efficiency.

Toshiba

Toshiba is also implementing a personal rationalization program that will include incentives for early retirement aimed at corporate staff members. Combined with its other efforts, Toshiba hopes to "establish a small but strong corporate function," one what will reduce operating costs by about 20 billion yen (~$165 million) by March 2016.

It remains to be seen how all of this will affect Toshiba's PC business. The company didn't offer a ton of insight into its PC plans, though it did say it will concentrate on in-house designs, focus on business-to-business (BtoB) sales, and consider alliances with third party companies.

The cuts will mostly affect Toshiba's home appliance operations. Specifically, Toshiba will stop making and selling twin-tub washing machines. It will also close and sell a plant in Japan that focused on its "Lifestyle" business, which is basically consumer electronics.

Via:  Toshiba (PDF)
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