New Delhi: Layoffs that started last year are not stopping yet. Daily, you may have encountered the news of the layoffs. After prominent companies such as Google, Amazon, and more, Toshiba, a prominent manufacturer of personal computers, consumer electronics, and home appliances, is gearing up to trim its workforce.
How Much Workforce Will Be Effected?
The manufacturer decided to restructure the workforce in Japan by seven percent, which amounts to around 5,000 job cuts. (Also Read: Paytm Initiates Customer Migration To Partner Banks For UPI Services)
Reason Behind Layoffs
Once a major employer in the nation, Toshiba’s restructuring move aims to streamline operations and reduce costs in non-core business areas, as reported by Nikkei. (Also Read: Viral Video: Zomato Boy Delivering Food On Harley-Davidson Surfaces Online — Watch)
Impact On Workforce
Toshiba, currently employing around 65,000 individuals in Japan, is bracing for one of its largest layoffs since 2015 if the plan is executed. The 2015 layoffs, amounting to 7000 job cuts, were a result of accounting irregularities.
Focus Areas
The company’s restructuring strategy is geared towards focusing on its infrastructure and digital technology business while streamlining operations in other areas.
This move comes amidst a broader trend of major companies in Japan, such as Shiseido, Omron, and Konica Minolta, also implementing layoffs and announcing plans for further reductions.
Global Layoff Trends
The layoffs at Toshiba coincide with similar actions by global giants like Amazon and Google, which have also announced significant job cuts recently.
Company Response
In response to inquiries, a report stated, “The restructuring plan is a key aspect of Toshiba’s efforts to enhance profitability, as part of its midterm management plan set to be unveiled in May.”
Additionally, the report mentioned, “The company will engage in discussions with its labor union starting in May to determine the number of positions to be eliminated in each business unit.”