232016 Electronics amp Technology Giant Toshiba Cutting 5 Of Workforce | Newsaratti

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08 Jan 2016by Freedom Chevalier

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Electronics amp Technology Giant Toshiba Cutting 5 Of Workforce

Move comes amid aftermath of accounting scandal and record loss

Toshiba Corp announced plans to cut nearly 8000 employees or 5 of its workforce and closetheir production facility in India Still reeling from the decommissioning of the Fukushima powerplant which played a prominent role the announcement follows on the heels of one of the biggestJapanese corporate scandals in recent years

And it doesnrsquot stop there Toshiba also reported a net loss of 550 billion yen ($458 million US) ndashthe largest recorded loss in the companyrsquos 140-year history

In February suspecting accounting irregularities the Securities and Exchange SurveillanceCommission (a Japanese Commission overseen by the Financial Services Agency responsible forldquoensuring fair transactions in both securities and financial futures marketsrdquo) began aninvestigation into the electronics and technology giant Toshiba Corp after publicly acknowledgingthe situation simultaneously launched an internal investigation in April When the depth andscope of the irregularities became apparent Toshiba handed the investigation over to anindependent third-party committee in May delaying the announcement of their 2014 earnings

A report issued by the committee found the company records contained numerousldquoinappropriaterdquo accounting entries for the 2009 ndash 2014 period which showed a staggering yen152billion ($126 billion US) profit It named top executives at Toshiba including then-president HisaoTanaka and predecessors Atsutoshi Nishida and Norio Sasaki among those responsible for thereporting manipulations It also claimed the company lacked an internal structure necessary to

halt the deception as junior managers were unable ldquoto go against the bossesrdquo

Hisao Tanaka refusing to address the specific details in the report insisted he did not explicitly issue a direct order to his junioremployees on the issue Mr Tanaka said he was ldquodeeply sorry for all the inconvenience and concern that we have caused ourinvestorsrdquo before stepping down as president Vice-Chairman Sasaki Advisor Nishida and six other directors also resigned

On December 21 Toshiba Corp announced they had reached an agreement to sell PT ToshibaConsumer Products Indonesia its Indonesian manufacturing plant for televisions and twin-tub washingmachines to China-based Skyworth The sale which also grants Skyworth the use of the Toshiba brandname throughout Asia except China itself will be finalized next year

Toshibarsquos mainstay business the production of memory chips is struggling to generate more moneyfor an industry that ldquofaces intense global competition and increasing price pressuresrdquo according to arecent report from Moodyrsquos Investor Service

The newly announced job cuts which could exceed 10000 at the final tally will be across several business verticals includingvideo production consumer electronics and personal computers While a majority of these cuts are expected to come from earlyretirement a significant number of overseas positions will be affected as well

Toshiba remains on the Tokyo Stock Exchange with the added designation of ldquosecurity on alertrdquo Toshiba has 12 months toimplement enhancements to internal accounting practices to ensure a repeat situation will not occur Failure to do so would

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232016 Electronics amp Technology Giant Toshiba Cutting 5 Of Workforce | Newsaratti

httpnewsaratticomelectronics-technology-giant-toshiba-cutting-5-of-workforce 23

result in Toshibarsquos de-listing and will require the already disgraced company to pay a yen912 million penalty

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Freedom ChevalierFREEDOM CHEVALIER [Editor Politics] is a political junkie a rehabilitated thespian and the author of countlessfeature articles several dramatic plays short stories songs poems and even a gritty thriller set in the world ofCanadian stand-up comedy of the 1990s She currently resides outside of Boston and is desperately trying toget back to the bayand she really has heard every possible joke about her name Speciality Subjects PoliticsUnited States Japan United Kingdom

More articles by Freedom Chevalier

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