"This is necessary for Toshiba to survive for another 100 years," Toshiba Chief Executive Officer (CEO) Shimada Taro said about the layoffs, which he described as a "painful decision".

New restructuring

According to Toshiba's statement, due to recent financial losses, the company will restructure and reduce the number of staff.

Accordingly, the company will lay off 4 thousand employees in the country until November. The layoffs correspond to 6 percent of the total number of personnel in the country.

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Shimada said that he "feels a strong sense of responsibility" and that through the reforms, the company should "transform into a business that the people need."

Noting that they aim to put the company back on the growth path, Shimada said they are "100 percent prepared to realize the best version of Toshiba."

Toshiba, which will focus its equity on growth areas such as infrastructure, energy and digitalization, plans to reduce unnecessary operations by integrating subsidiaries.

The Japanese electronics manufacturer announced a net loss of 74.8 billion yen ($481 million) in fiscal 2023, covering the period from April 2023 to March 2024. 

Editor: David Goodman