Toshiba Lays Off 4,000 Employees,

Era of Japanese Electronics Ends?

Jakarta, CNBC Indonesia – Toshiba has laid off up to 4,000 employees in Japan. The decision to lay off people was taken because the company from Sakura Country wanted to speed up restructuring under new ownership.

It is known that in December, Toshiba was taken over for around US$ 13 billion (Rp. 208 trillion) by a consortium led by private equity company Japan Industrial Partners (JIP).

The restructuring accounts for 6% of Toshiba’s domestic workforce. The company also said it would move office functions from central Tokyo to Kawasaki.

The electronics giant is also targeting an operating profit margin of 10% in three years, as quoted by Reuters, Tuesday (21/5/2024).

In Japan, known for its conservative business culture, private equity firms are increasingly seen as an option for companies ditching non-core assets or lacking succession candidates.

The consortium’s efforts to engineer a turnaround at Toshiba are seen as a test for private equity firms in Japan, which were once seen as hagetaka, or vultures, because of their good reputations.

The wave of Japanese companies carrying out layoffs in recent months has been increasing, including photocopier maker Konica Minolta, cosmetics company Shiseido and electronics company Omron.

SOURCE : CNBC INDONESIA