Toshiba announces 2nd round of layoffs following scandals, resignations and multibillion dollar loss forecast

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It was recently announced that Toshiba would be laying off a total of 7,800 employee, this is in addition to the 900 layoffs announced in 2014.

Over the past 4 years the company has seen declining sales of consumer electronics and appliances, accounting scandals, multi-billion yen losses, resignations and possible fines.

According to the Wall Street Journal, the company lost 63.5 billion yen in 9 months ending in December 2014.

In 2015 PC, TV and appliance sales only made 18% of total sales which is down from 46% in 2006.

It also supplied 2 reactors to at the now shuttered Fukushima nuclear plant that has left thousands displaced, furthermore it is expected to take 40 years to decommission the plant.

 

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Things got even worse earlier this year when the company was suddenly embroiled in a accounting scandal where the company admitted to overstating its profits by nearly $2 billion over the past 7 years. Even though they first announced accounting problems in April 2015 the extent was not fully understood until early September.

The scandal resulted in its CEO Hisao Tanaka resigning along with 7 of 16 board members stepping down in July.

 

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