Posted on September 30, 2013 by staff

Toshiba To Cut Staff Numbers By Half

Toshiba To Cut Staff Numbers By Half

Toshiba will cut staff numbers in its TV division by half and close two of its overseas manufacturing facilities.

Japanese electronics corporation will make the changes in an attempt to boost profits.

In July, the company announced it would cut a combined 10 billion yen (£62.5million) in costs in its TV and PC businesses during this fiscal year to cope with money losses brought on by weak demand over the last two years.

Toshiba will increase outsourced production to 70% from 40% and cut staff numbers down to 3,000. It has not announced which two of its three factories in China, Indonesia and Poland would close.

Toshiba said in a statement that the changes were aimed “toward improving profitability and strengthening foundations of the business.”

The company’s digital products division, which includes TV manufacturing, saw its losses widen to 16.3bn yen (£103million), in the financial year to 31 March, compared with a loss of 3.3bn yen a year earlier.

The firm said it would separate the TV business from its Digital Products & Services Company and merge it with Toshiba Home Appliances Corporation.