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.