Toshiba Records $4.5 Billion Annual Loss
John Williamson / 4 years ago
Toshiba CEO was forced to resign after revelations came to fruition about the company’s management exaggerating operating profits by as much as $1.2 billion. Clearly, this has made a profound impact on their reputation among partners and consumers. According to The Wall Street Journal, The company is set to make a $4.5 billion annual loss with 7,800 jobs being cut as part of a large restructuring programme. Toshiba is having to make difficult decisions to try to restore faith in the company and rebuild once again. However, given their tarnished reputation, it’s impossible to know if they have a long-term future.
Out out the job losses, 6,800 are going from Toshiba’s customer electronics and applications department. Toshiba President Masashi Muromachi said about the upcoming financial period:
“We admit our steps toward restructuring were behind the curve,”
“The damage wouldn’t be this large if we had been able to implement overhaul plans much sooner.”
He also suggested that the company would “focus on businesses that can generate profits” and “consider withdrawals from unprofitable ones if a turnaround is difficult.” This is an interesting statement to make and exemplifies how challenging Toshiba’s future is. It seems even the company’s CEO isn’t optimistic about the profitability of certain markets. This means is perfectly feasible for them to exit the consumer electronic sector to stay afloat.