Earlier this year, it was discovered that Toshiba had exaggerated its operating profits by around $1.2 billion over the last six years, which not only resulted in both its CEO and vice-chairman being forced to resign from the company, but caused the company to suffer from a whopping $4.5 billion of losses. Toshiba has had to sell some of its assets in order to make up for these losses, such as the image sensor division it sold to Sony for $155 million, and this morning it announced that 6,800 employees would be losing their jobs in order to cut costs.
Toshiba has announced that it is cutting 6,800 jobs amidst an ongoing accounting scandal. One of Japan’s biggest tech companies, Toshiba, has been embroiled in a massive controversy surrounding accounting irregularities. Earlier in the month, it was revealed that the company was facing a record £39 million fine for overstating its profits by £780 million over a seven year period. This investigation and the resulting restructuring process is hitting Toshiba hard. The company has just announced that it is expecting to record a 550 billion yen (£3 billion) annual loss. The knock-on effect of this is that Toshiba will cut some 6,800 jobs from its Lifestyle division, which is essentially the company’s consumer products division. These cuts will all take place by March 2016. Toshiba will also be selling off its Indonesia-based TV and washing machine manufacturing plant to a Hong Kong-based partner. Shares in Toshiba have lost 40 percent of their value since news of the company’s financial irregularities begun to emerge earlier in the year.