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



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.




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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