Toshiba share price topples as electronics giant reveals restructuring plans, including thousands of job losses
Shares in Toshiba toppled today after the electronics giant revealed its revitalisation action plan, designed to shakeup the structure of the company.
The plans included cutting 6,800 jobs from its lifestyle business division, which deals with PC, visual products and home appliances, by next March, and focusing more on cash flow, rather than profit, for the company's mid-term business plans.
According the Reuters, Toshiba has also said that it is expecting to see a net loss of roughly 550bn yen (£3bn) in its accounts for the year ended March 2015, while chief executive Masashi Muromachi told a news conference: “By implementing this plan, we would like to regain the trust of all stakeholders and transform ourselves into a robust business.”
Share price in the company plummeted, closing down 9.8 per cent for the day. Toshiba's share price has almost halved over the course of the year and has dropped around 40 per cent in the last six months alone.
The announcement comes just a fortnight after Japan's Securities and Exchange Surveillance Commission (SESC) recommended Toshiba be issued a 7.37bn yen fine for making false statements about its profits, the largest such fine in Japan for accounting violations.
In April, questions were raised over some of the firm's accountancy practices which had lead to profits being overstated by 155bn yen across a seven-year period.