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Toshiba Tec to be sold?

December 23, 2015

Toshiba’s office equipment subsidiary may be sold as part of the OEM’s “major restructuring”.

Toshiba's headquarters in Tokyo, Japan

Toshiba’s headquarters in Tokyo, Japan

Japan Times reported on the restructuring at Toshiba, which is also set to include “thousands of job cuts” worldwide as the OEM looks at reorganising the “loss-making” TV, computer and white goods businesses. Toshiba was found to have “inflated profits […] with bosses’ knowledge” by around £780 million ($1.2 billion/€1.1 billion) in July 2015.

This led to former CEO Hisao Tanaka, who resigned after admitting he was aware of the profit inflation scandal, facing an action for compensation of ¥300 million ($2.4 million/€2.2 million), along with two former CFOs and two other ex-CEOs. The profit scandal cost the OEM around ¥90 billion ($738 million/€680 million) in the first half of the financial year, and lies behind the restructuring plans.

The Toshiba Tec subsidiary focuses on office equipment, including printers and cartridges, and sources said this was among the “units to be axed”, as by selling “its majority stake” in the company, Toshiba would then “focus on its mainstay businesses”, including nuclear power and semiconductors. The subsidiary employs around 20,000 staff, but incurred a net loss of ¥7.4 billion ($61.1 million/€55.9 million) in the first half of the year, and President Masashi Muromachi added that he will “proceed with restructuring without limits”.

The news outlet noted that the company “is expected to solicit early retirements and to transfer workers”, with details set to be revealed soon. Other areas “under consideration” in the restructuring include the “downsizing” of the OEM’s Ome complex in Tokyo, where TVs and PCs are produced, as well as the sale of an Indonesian TV plant “to a foreign maker” and the “likely sale of a washing machine plant in the same country.

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