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Toshiba predicts record $4.5bn loss | Toshiba predicts record $4.5bn loss |
(about 1 hour later) | |
Troubled Japanese conglomerate Toshiba has said it will report a record 550bn yen ($4.5bn) annual loss and cut 6,800 jobs as it carries out a restructuring. | |
The company, whose activities range from laptops to TVs to nuclear energy, is shedding the jobs in its consumer electronics division. | |
News of the predicted losses sent shares in Toshiba down by nearly 10%. | |
The restructuring comes after Toshiba admitted earlier this year that it had overstated profits for six years. | |
The scandal led to the resignation of Toshiba's president and vice-president. Masashi Muromachi took over as chief executive and president from previous president Hisao Tanaka. | |
Declining value | |
As part of its restructuring, Toshiba will sell its TV and washing machine manufacturing plant in Indonesia to Hong Kong-based TV maker Skyworth for about 3bn yen. It is also looking for investors for its healthcare business. | |
The 6,800 job cuts will go in its Lifestyle division, essentially its consumer electronics business, and Toshiba said the cuts would be made by March 2016. | |
A number of jobs will be lost by offering early retirement to those employed in Japan. | |
Toshiba, which was founded in 1875 and launched the world's first mass-market laptop in 1985, currently employs almost 200,000 people. | Toshiba, which was founded in 1875 and launched the world's first mass-market laptop in 1985, currently employs almost 200,000 people. |
Its shares have lost about 40% of its value since news of the profit overstatement began to emerge in April. | |
Some of Toshiba's problems go back to the tsunami which hit Japan in 2011. This struck the Fukushima Dai-ichi nuclear power plant, which it operates and is decommissioning with Hitachi and other companies. | |
Toshiba has not yet fully calculated the impact of the nuclear disaster on its books. |