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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Makerbot cuts 180 jobs and closes all 3 retail shops in less than a year

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MakerBot which was founded in 2009 by Bre Pettis, Adam Mayer, and Zach Smith quickly ballooned into a megacompany with a 50,000 square foot factory in Brooklyn, 150+ employees in 2013 and they grew to 580 employees by early 2015 just before the 2 rounds of layoffs began (100 for the 1st round and 80 for the 2nd).

The fact that they had over 500 employees at one point is shocking since they made and sold relatively expensive devices to a very small niche market.

While its nice to have something that is truly made in America with devices that were assembled in America, the reality is most people aren’t interested in putting together a model airplane let alone draw up a design in cad, spend over a thousand dollars ($1,375 for mini to $6,499 the larger version) to print one out in MakerBot section by section, paint it then assemble it, at least not enough people to justify the rate the company was expanding at in such a short amount of time.

I’ve dealt a lot with MakerBot’s and I would personally never buy one. There are many comparable alternatives for almost half the price and the newer 5th Gen models have AWFUL extruders… they clog like crazy and are not nearly as easy to disassemble and clean as other models. — greysplash (Reddit.com)

The company is also facing a class action lawsuit over faulty extruders that frequently clogged and allegedly led to shareholders losing millions of dollars once the issue came to light.

Like Krispy Kreme over a decade ago, it appears MakerBot also bought into its own hype and is now paying a huge price. Sadly for the 100 or so former employees who only wanted to make a living they were unceremoniously escorted out by security earlier this year and left to find work elsewhere.

“3D printing is one of the fastest growing technologies in the world today. To keep up with the growing demand in the 3D printing industry, MakerBot is hiring 50+ new employees in the coming months” — Makerbot Press Release 2013

It seems like their business strategy was banking on demand catching up with supply.

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Microsoft to give 7,800 Mobile employees the boot a year after acquiring Nokia

Microsoft CEO Satya Nadella (left) and executive vice president of Microsoft Devices Group Stephen Elop share a moment as the deal that brings together Microsoft and the Nokia Devices and Services business closes today.  (PRNewsFoto/Microsoft Corp.) THIS CONTENT IS PROVIDED BY PRNewsfoto and is for EDITORIAL USE ONLY**

 

In an email that was later published on Microsoft.com, the company’s CEO Satya Nadella announced the layoff of 7,800 employees which is expected to take place over the next several months with the majority of those layoffs being from the Mobile Division.

The announcement comes weeks before Microsoft is scheduled to launch Windows 10 that it claims will be ‘Last Version Of Windows’ and just a year after it finalized acquisition of Nokia’s phone division back in April 2014 for $7.17 billion.

This will make a total of 25,800 layoffs announced by the company since Nadella became CEO of Microsoft February 2014.

Satya who recently said that its “Bad Karma” for women to ask for a raise, doesn’t seem to have a concise long term plan for Microsoft. Within the past year he seems focused on making cuts to both the company’s product lineup and employees instead of focusing on new technologies to compete with Google and Apple, it is also unclear how his plan of making Windows 10 the last version of Windows will play out in the long term.

Ever since Windows officially launched 30 years ago there has always been buzz surrounding the next version of the operating system, people around the world have always been excited about what the company had in store but since the announcement was made to make Windows 10 the last version, users could lose interest and start looking for other free alternatives like Ubuntu which could be devastating to the already fledgling company.

They have also not been forthcoming to with users on how it intends to officially launch the new OS, while they claim that it will be free for Windows 7 and 8 users to upgrade there have been reports from Forbes and Money Talks News that the free version will only last for 1 year.

 

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