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Newly privatised Toshiba to cut 4,000 jobs in restructuring drive

Published 05/16/2024, 04:02 AM
Updated 05/16/2024, 04:07 AM
© Reuters. FILE PHOTO: The logo of Toshiba Corp is displayed at the company's building in Kawasaki, Japan, April 5, 2023. REUTERS/Androniki Christodoulou/File Photo

By Sam Nussey

TOKYO (Reuters) - Japan's Toshiba (OTC:TOSYY) said on Thursday it will cut up to 4,000 jobs domestically as the industrial conglomerate accelerates restructuring under new ownership.

Toshiba delisted in December due to a $13 billion takeover by a consortium led by private equity firm Japan Industrial Partners (JIP), capping a decade of scandal and upheaval.

The consortium's efforts to engineer a turnaround at Toshiba are seen as a test for private equity in Japan, which used to be seen as "hagetaka" or vultures due to its rapacious reputation.

Toshiba said it would relocate office functions from central Tokyo to Kawasaki, west of the capital, and target an operating profit margin of 10% in three years.

© Reuters. FILE PHOTO: The logo of Toshiba Corp is displayed at the company's building in Kawasaki, Japan, April 5, 2023. REUTERS/Androniki Christodoulou/File Photo

In Japan, which is known for its conservative business culture, PE firms are increasingly seen as an option for companies disposing of non-core assets or lacking succession candidates.

A wave of companies have announced job cuts in recent months including photocopier maker Konica Minolta, cosmetics firm Shiseido and electronics firm Omron.

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