Toshiba of Japan announced on Thursday its plan to trim up to 4,000 positions within the country as part of its intensified restructuring efforts under new ownership, reported news agency Reuters.
Following a tumultuous decade marked by scandals and significant changes, Toshiba was delisted in December following a $13 billion acquisition by a consortium spearheaded by private equity firm Japan Industrial Partners (JIP).
The consortium’s endeavours to revitalise Toshiba are being closely monitored as a litmus test for the role of private equity in Japan, a market historically wary of such firms due to their aggressive tactics, often likened to “hagetaka” or vultures.
This restructuring initiative translates to approximately 6% of Toshiba’s domestic workforce being affected. Additionally, the company revealed plans to shift office operations from central Tokyo to Kawasaki, located to the west of the capital, while setting a target of achieving a 10% operating profit margin within three years.
In Japan’s traditionally conservative business landscape, private equity firms are increasingly considered viable options for companies seeking to divest non-core assets or grappling with succession challenges.
A trend of workforce reduction has been observed across various sectors in recent months, with companies such as photocopier manufacturer Konica Minolta, cosmetics giant Shiseido, and electronics firm Omron among those announcing job cuts.
With inputs from Reuters.