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Japan's Toshiba is in deep crisis of business and will lay off 7,000 people in the next five years

via:博客园     time:2018/11/9 17:31:42     readed:260


Tencent Technology News, according to foreign media reports, Japan's established technology company Toshiba announced that the company will lay off thousands of people in the future to reverse the current poor business conditions.

Toshiba announced on Thursday that as part of a new five-year strategy, the group will lay off 7,000 people (about 5% of its global workforce). At the same time, Toshiba will also sell the US's struggling gas business and liquidate its UK nuclear energy sector, which will completely terminate its nuclear power plant construction projects in the UK.

Toshiba's share price soared more than 12% on the Tokyo Stock Exchange, as the news was announced, investors received news that Toshiba would repurchase up to 40% of the shares, and the company was encouraged to raise its dividend payout.

Toshiba said it hopes to completely withdraw from the US LNG business by March 2019, but the company has not provided any details of potential buyers. According to outside analysis, the department's loss is expected to reach 93 billion yen (about 818 million US dollars), and there is news that China's large private gas company Xinao Energy may be negotiating with Toshiba.

At the same time, due to the failure to find a buyer's takeover, the company also decided to close the UK nuclear power business and its subsidiary, “NuGeneration,” in the northwestern region of Moorside, Cumbria, in early England. The contractor of the nuclear project).

In its statement, Toshiba pointed out that considering the extra cost of the company in the ongoing nuclear era, the exit from the UK's nuclear power plant construction project is the most reasonable decision from the economic point of view.

It is reported that Nuclear Age will retain a team to support the implementation of the liquidation process and will complete the remaining work with Toshiba and other stakeholders.

Toshiba said that the layoffs will be carried out through direct layoffs.

Center of gravity adjustment

Previously, due to the significant asset write-down of the nuclear power business, Toshiba was caught in a huge crisis of insolvency. Together with the subsidiary Westinghouse Electric filed for bankruptcy, the nuclear power crisis caused a total of $9 billion in economic losses to Toshiba. Therefore, while selling the flash memory business, Toshiba officially announced its business restructuring plan last year, affecting 19,000 employees.

Toshiba split its main business into four independent companies. Through the spin-off, Toshiba hopes to give greater autonomy to each sub-business, improve management efficiency, and encourage each to develop business opportunities.

Toshiba said after the restructuring that the company will focus on the energy storage and semiconductor industries for the automotive and infrastructure sectors.

To avoid marginalization, Toshiba had to survive by divesting its main assets in recent years, including selling control of its highly regarded storage chip business to a group of investors, including Apple.

At the beginning of this year, Toshiba sold the US nuclear energy subsidiary Westinghouse Electric to the Canadian investment company Brookfield Business Partners for $4.6 billion, ending the catastrophic test of the US nuclear power industry.

In addition, investors' confidence in Toshiba was also ruined by a huge scandal in 2015. At that time, Toshiba was shocked by the Japanese business community by falsely reporting that operating profits were caught in accounting scandals. The company's falsely reported profits amounted to 151.8 billion yen (about 1.2 billion US dollars), accounting for nearly 30% of Toshiba's 565 billion yen pre-tax profit. The scandal eventually led Toshiba’s then CEO, Tanaka, and several board members to resign, and the company faced a huge fine from the regulatory authorities.

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