A few months ago, Toshiba announced it had declared $1.2 billion in false profit, an accounting scandal that would result in former President and CEO Hisao Tanaka stepping down.
Unfortunately, employees are about to feel the brunt of the mistake as a major restructuring called a “revitalization action plan” is about to take place that will see Toshiba cut 7,800 jobs.
To make matters worse, most of the jobs being cut affect employees in the company’s consumer electronics division, signifying that one of Toshiba’s most important divisions is struggling.
Toshiba is now looking to completely offload some its divisions, with its PC business and health care products divisions the ones likely to go first.
The revitalization action plan is expected to ultimately contribute to a loss of $4.5 billion for the financial year that ends in March.
Toshiba has seen better days to say the least.