Toshiba has announced that it is cutting 6,800 jobs amidst an ongoing accounting scandal.
One of Japan’s biggest tech companies, Toshiba, has been embroiled in a massive controversy surrounding accounting irregularities.
Earlier in the month, it was revealed that the company was facing a record £39 million fine for overstating its profits by £780 million over a seven year period.
This investigation and the resulting restructuring process is hitting Toshiba hard. The company has just announced that it is expecting to record a 550 billion yen (£3 billion) annual loss.
The knock-on effect of this is that Toshiba will cut some 6,800 jobs from its Lifestyle division, which is essentially the company’s consumer products division. These cuts will all take place by March 2016.
Toshiba will also be selling off its Indonesia-based TV and washing machine manufacturing plant to a Hong Kong-based partner.
Shares in Toshiba have lost 40 percent of their value since news of the company’s financial irregularities begun to emerge earlier in the year.
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Toshiba was founded in 1875, and it currently employs almost 200,000 people around the world. As the BBC points out, it was Toshiba that launched the world’s first mass-market laptop computer back in 1985.
Toshiba was badly affected by the tsunami that hit Japan back in 2011. The company operated the Fukushima Daiichi nuclear power plant that was badly damaged by that natural disaster, and has been forced to decommission it.