Toshiba posts $4.5 billion annual loss and plans to restructure

Toshiba is navigating in troubled waters. The company has forecast a $4.5 billion operating loss for its fiscal 2015, and it's planning to cut 7,800 jobs and several of its businesses. The firm notified stockholders of the operating loss and the consequent lack of a stock dividend for March 2016, chiefly because of an accounting scandal that unfolded this year.

The beleaguered company has lost roughly half its market value since March, and now plans to restruture its business operations. To that end, it's published the "Toshiba Revitalization Action Plan," a document that describes the measures it will take to try and fix its finances.

For starters, its Lifestyle segment will cut 6,800 jobs by the end of March. Meanwhile, the company's PC division will focus on business-to-business operations in the Japanese and US markets, and "end consignment of design and manufacturing to outside vendors." Toshiba says that this move will allow it to reduce its PC product platforms to below one-third of the current number.

The company's TV business will also undergo further paring. In Europe and the United States, this business already operated under a licensing model. Toshiba now plans to use this model in Asia as well. It will sell its TV production plant in Indonesia to a third-party and focus on high-end sets for the Japanese market. Last not least, the firm's corporate headcount will be reduced by 1,000.

Comments closed
    • JustAnEngineer
    • 7 years ago

    Have they done anything about the clicking?
    [url<]https://www.youtube.com/watch?v=_PNU84bbass[/url<]

    • SoberAddiction
    • 7 years ago

    It’s a TRAP!

    • just brew it!
    • 7 years ago

    Now that you mention it, yes I have seen some “Made in Bangladesh” tags on clothing in the past few years.

    • BobbinThreadbare
    • 7 years ago

    It already is happening in non-tech areas. I believe Somalia is taking over shoe production, and a lot of textile production is moving to Bangladesh.

    • just brew it!
    • 7 years ago

    I remember using one of those early Toshiba laptops on a business trip around that same timeframe. We had one that was shared by the entire office, and if you were traveling you got to check it out. The screen was a monochrome plasma panel, IIRC.

    • just brew it!
    • 7 years ago

    …and perhaps someone else will do it to them in turn. Though it appears that the Internet has allowed India to bypass manufacturing (“let’s produce cheap consumer goods for the world”) and go straight to a service economy (“let’s be the world’s outsourced phone support and IT contractor”).

    • TheJack
    • 7 years ago

    Wonder what will happen to Japan’s economy once the chinese start exporting cars.

    • Unknown-Error
    • 7 years ago

    Sad part is, my first laptop was a Toshiba way back in 1989. Still remember my dad buying it in Singapore.

    • albundy
    • 7 years ago

    Unfortunately yes. But what’s even more obvious is the bottom of the barrel piss poor quality being churned out of the chinese electronics ghettos that are producing this garbage for them, thus ruining their brand reputation. At this point, I’m not sure there are anymore corners to cut… is that why they started cooking their books?

    • UberGerbil
    • 7 years ago

    Toshiba is involved in everything from MRI machines to fuel cells, sewage treatment to point-of-sale systems. They make nuclear reactors and elevators, weather radars and transit ticket machines. They almost certainly need to focus on what they’re good at, but as profitable as their NAND business has been, it’s just a small part of a small division of a large conglomerate; it’s not going to save them by itself.

    • yogibbear
    • 7 years ago

    What brand of robotic hand did you get? I heard the 1.0.5.3 firmware update for my ROTOclawhammer stopped the index finger from sometimes glitching.

    • HERETIC
    • 7 years ago

    “The low-cost producer wins, even if they churn out crappy products initially.”
    ” They’re just really good at being blatant copycats.”
    Your describing Japan in the 60s-perfectly there…………..
    Only time will tell about innovation–Korea not doing too bad………………….

    • ronch
    • 7 years ago

    Samsung.

    • ronch
    • 7 years ago

    The low-cost producer wins, even if they churn out crappy products initially. Not sure China understands the spirit of innovation as well as Japan or the U.S. or Germany does, tho. They’re just really good at being blatant copycats.

    One thing I understand is this: machines from the likes of Germany, Sweden, Japan, etc. not only work well and are designed to last, they also have a ton of failsafes. With China, just make it work and it’s ready for prime time. Never mind safety or durability. Very different culture.

    • HERETIC
    • 7 years ago

    And the wheel turns-China and Korea doing to Japan what Japan did to us 25 years ago…….

    • Wirko
    • 7 years ago

    Toshiba is a giant that manufactures pretty much everything, including semiconductors ([url<]http://www.icinsights.com/news/bulletins/Six-Top-20-1Q15-Semiconductor-Suppliers-Show-20-Growth-/[/url<]) and LCD panels (through Japan Display). Nuclear power plants, too. (Does anyone buy those any more?)

    • Chrispy_
    • 7 years ago

    They should focus on what they’re good at. They’re a NAND company really.

    They assemble TV’s using someone else’s panels driven by someone else’s silicon in a plastic frame with Toshiba etched onto the front. Etching your logo into plastic is not a good core business.

    They assemble PC’s and laptops using pretty much everything from someone else, and don’t even use their own drives. I put an SSD in a brand new laptop which I was startled to find a Seagate drive in. Toshiba make hard drives, so some beancounter decided a cheap Seagate was more profitable (and Toshiba are like so many other lagging PC companies that refuse to fit SSD storage as standard across their range….)

    • Wirko
    • 7 years ago

    First question that comes to mind … what brand?

    • Wonders
    • 7 years ago

    I wonder what this means for OCZ?

    • Meadows
    • 7 years ago

    This loss has been accrued over 6 years, however.

    • TheJack
    • 7 years ago

    What a pity. Toshiba is a company with really good and affordable products, wouldn’t want to see them go.

    • sweatshopking
    • 7 years ago

    Sounds a lot like Sony over the past few years.

    • Neutronbeam
    • 7 years ago

    True, but I must concede sir that indeed you have Trumped me.

    • Duct Tape Dude
    • 7 years ago

    Toshiba Revitalization Uber Monetization Plan

    …I’m sorry, I know this is a family site and I shouldn’t allude to such vulgarities around here.

    • just brew it!
    • 7 years ago

    By market capitalization they’re 50x AMD’s size, and diversified into many different industries. So yeah, big difference.

    • tipoo
    • 7 years ago

    Holy moly that is an eye watering loss. For perspective, the loss alone could fit a few of what AMD is worth in total in!

    [url<]http://news.softpedia.com/news/amd-is-worth-today-a-quarter-of-what-it-paid-for-ati-487173.shtml[/url<] Though Toshiba is also so much larger it's hard to compare, but the scale of things is incredible.

    • tipoo
    • 7 years ago

    I think Toshibas loss alone is probably around as big as AMD is as a company!

    • Neutronbeam
    • 7 years ago

    Or “Strategic Hierarchy Internal Transformation”–see, you CAN make this s&&t up! 🙂

    • LoneWolf15
    • 7 years ago

    (Brit accent) Well played, sir. Well played.

    • WhatMeWorry
    • 7 years ago

    Good one.

    At least it wasn’t a “Corporate Revitalization Action Plan”.

    • Unknown-Error
    • 7 years ago

    And I thought AMD losses were big.

    • just brew it!
    • 7 years ago

    Not sure why that got a downvote. With Korea, and then China pushing aggressively into mainstream consumer electronics over the past couple of decades it was inevitable that there would be a thinning of the herd at some point. Sharp and Panasonic also seem to be pulling back from the consumer electronics market, after struggling in recent years; and Sony isn’t the consumer electronics powerhouse it used to be either.

    Consumer electronics is no longer dominated by the big Japanese firms; that much should be obvious.

    • ronch
    • 7 years ago

    Double post. My tablet’s fault.

    • ronch
    • 7 years ago

    I think it’s no secret that the world market for consumer electronics and such is simply over-saturated, and there simply isn’t enough room to support all the players well enough that all or most of them would be profitable enough to keep doing business.

    • ronch
    • 7 years ago

    You beat me to it. Well done!

    • nerdrage
    • 7 years ago

    Well played! *high fives*

    • RephRayne
    • 7 years ago

    “Toshiba Revitalization Action Plan”

    So what you mean to say is….

    *dons sunglasses*

    It’s a TRAP.

    Two memes in one, you’re welcome.

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