Toshiba to reduce workforce by up to 4,000 employees

Toshiba, a struggling Japanese industrial giant, has announced plans to cut up to 4,000 jobs nationwide as part of a restructuring program. This decision comes after the company’s shares were delisted in September, leading to its privatization by a consortium due to multiple crises it faced. By November, the reduction in staff will be completed, with a voluntary early retirement option being offered to employees over the age of 50 who meet specific criteria.

The company spokeswoman stated that while it was a difficult decision for management to make, they believe these measures are necessary to put Toshiba back on a path toward recovery and growth. In Japan, large-scale layoffs are uncommon, but the use of early retirement or voluntary layoff programs is becoming more prevalent.

Additionally, Toshiba has set a goal of achieving an operating profit of 380 billion yen ($2.5 billion) and a 10% return on sales by fiscal 2026, according to reports from Bloomberg News. In the first half of fiscal 2025, the company plans to relocate headquarters functions from Tokyo’s Hamamatsucho area to Kawasaki, located outside the Japanese capital.