Toshiba to book record loss, cut 5 percent of workforce this year

[bananas]

Source: Reuters

Toshiba Corp said on Monday it would book a record net loss this year and cut around 5 percent of its workforce as the sprawling conglomerate, reeling from a $1.3 billion accounting scandal, focuses on chips and nuclear energy.

But analysts question whether streamlining can return the 140-year-old Japanese bulwark to dominance considering falling profit margins in the chip industry and a nuclear phase-out in developed countries since the 2011 Fukushima disaster.

<snip>

"Toshiba said it will focus on chips but it will take time for profit to regrow," said analyst Hideki Yasuda of Ace Research Institute. Profitability at Toshiba's nuclear business including U.S. subsidiary Westinghouse is also a concern, Yasuda said.

Toshiba last month said Westinghouse wrote down assets by $1.3 billion over the 2012 and 2013 business years. Analysts have also said Westinghouse faces increasing competition from Chinese and Russian builders of cheaper reactors.

Read more: http://www.reuters.com/article/us-toshiba-restructuring-announcement-idUSKBN0U40IH20151221

[bananas]

1. Via dpreview.com: "So much for Japan Inc's squeaky clean image"

http://www.dpreview.com/forums/thread/3941980

Potemkin_Photo
Senior Member • Posts: 1,442

So much for Japan Inc's squeaky clean image
7 hours ago

Toshiba basically did an Olympus, but about 100x bigger in scale. AND, it's been ongoing since 2008. Shame shame.

[hr]
RichRMA
Senior Member • Posts: 3,968 • Gear list

Re: So much for Japan Inc's squeaky clean image
In reply to Potemkin_Photo, 3 hours ago

When Michael Crichton wrote "Rising Sun" about Japanese business, he was attacked for it. He was just predicting what would eventually come to light.
[hr]
Potemkin_Photo OP
Senior Member • Posts: 1,442

Re: So much for Japan Inc's squeaky clean image
In reply to OpticsEngineer, 1 hour ago

It's only a scandal cuz they got caught. Gonna be a lot more of this before there is less.

Just look at how the Japanese gov't lied about the triple nuclear reactor meltdowns previously.

Corruption is as prevalent in Japan as anywhere else, no matter what they would have you believe otherwise.

[bananas]

2. Toshiba forecasts massive $4.5 billion annual loss

http://money.cnn.com/2015/12/21/investing/toshiba-restructuring-accounting-scandal/

Toshiba forecasts massive $4.5 billion annual loss
by Sophia Yan and Yoko Wakatsuki @CNNMoneyInvest
December 21, 2015: 2:56 AM ET

Toshiba expects to post a $4.5 billion loss this year as it deals with the aftermath of a massive accounting scandal.

The estimated loss is significantly higher than analysts had expected, and is six times more than the 90.5 billion yen ($734 million) loss it posted for the first half of the year.

<snip>

Miles said there could still be additional "skeletons in the closet" at Toshiba.

"It just keeps coming, and there is still a lot to do -- it's a very opaque company," he said of the accounting scandal.

[Human101948]

3. The staff they should cut is in the executive suite...

but you know how it goes. Low level worker and managers will pay the price.

[groundloop]

4. Yep.... Upper Mgt. Fucking Up Means Working People Get Screwed

Time and time and time again corporations are run into the ground by poor decisions of upper management, who face few consequences. It's always the working people who pay the price.