Sunday, July 21, 2024
HomeBusinessToshiba to cut 5,000 jobs. Why are layoffs now a trend even...

Toshiba to cut 5,000 jobs. Why are layoffs now a trend even in Japan? | World News

Toshiba to cut 5,000 jobs. Why are layoffs now a trend even in Japan? | World News

Toshiba Corp. is reportedly planning to reduce its workforce in Japan by 5,000 employees, amounting to approximately 10 per cent of its total headcount, according to a report by Nikkei. This move signals a departure from Japan’s historical aversion to layoffs, reflecting the growing acceptance amid persistent labour shortages in the country.


If implemented, this initiative would mark one of the largest job reduction efforts in Japan this year. The Tokyo-based company aims to streamline its operations by downsizing noncore businesses. As a consequence, Toshiba anticipates incurring a one-time cost of around ¥100 billion ( 5,400 crore), the report said.

HT launches Crick-it, a one stop destination to catch Cricket, anytime, anywhere. Explore now!

ALSO READ- Tesla layoffs: Global job cuts at Elon Musk company to impact China the most?

Layoffs in Japan? A rare phenomenon

• Layoffs at Toshiba mark a departure from Japan’s tradition of strong worker protection laws, reflecting a trend among blue-chip companies amid a historic labour shortage.

• Factors such as union demands for blanket pay raises, increased worker mobility, and a growing reliance on foreign workers contribute to the changing landscape.

• Several other prominent Japanese firms, including Shiseido Co., Omron Corp., and Konica Minolta Inc., have also announced job cuts in recent months.

ALSO READ- Tech layoffs: Grand Theft Auto maker Take-Two to fire 5% workforce

Problems at Toshiba

• Toshiba, once a major employer in Japan, faces ongoing challenges as it seeks to streamline operations and focus on infrastructure and digital technology. Its diverse portfolio includes nuclear turbines, batteries, and quantum computing technologies.

ALSO READ- Snake spotted inside bullet train in Japan, service delayed by 17 minutes

• The company has a history of management missteps and scandals, including a record penalty for falsifying financial statements in 2015.

• Toshiba’s efforts to recover from losses, including the sale of its memory-chip business, have been complicated by issues in its nuclear business.

• Executives have pursued a $15 billion buyout to take the company private, aiming to turn the page on a troubled period in its 149-year history.

Source link



Please enter your comment!
Please enter your name here

- Advertisment -
Google search engine

Most Popular

Recent Comments