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ROUNDUP: Toshiba To Cut 900 Jobs In PC Restructuring; Backs FY14 Forecast
[September 18, 2014]

ROUNDUP: Toshiba To Cut 900 Jobs In PC Restructuring; Backs FY14 Forecast


(dpa-AFX International Compact Via Acquire Media NewsEdge) TOKYO (dpa-AFX) - Japanese electronics manufacturer Toshiba Corp. (TOSYY.PK, TOSBF.PK) Thursday said its planned restructuring in PC business would result in about 900 job cuts within this fiscal year, more than 20 percent of the segment's total workforce. The moves would also cut fixed costs by more than 20 billion yen against last year. Separately, the company backed its forecast for fiscal 2014, while revised segment outlook.



For fiscal 2014, the company continues to expect consolidated net income attributable to shareholders of 120 billion yen or 28.34 yen per share, operating income of 330 billion yen, and net sales of 6.70 trillion yen. The forecast represents a growth of 1 percent in net income, and 0.4 percent in operating income from last year.

Meanwhile, in Lifestyle products & services, the company now sees a 110 billion yen drop in sales than expected earlier, mainly due to the restructuring in PC business.


However, this will be offset mainly by the good performances in the Energy & Infrastructure and Electronic Devices & Components segments, resulting in a growth in sales of 40 billion yen and 20 billion yen, respectively, than expected earlier.

In its statement regarding the restructuring, the company said it will accelerate the restructuring of its PC business to focus on the profitable business 2 business or B2B field, and to control volatility in the B2C business by significant downsizing measures, including withdrawal from certain B2C markets. These moves would support the business in securing consistent profit in the future.

In the B2B market, Toshiba will expand its wide product range, from workstations to tablet PCs. The company will also move ahead with actively promoting the IoT (Internet of Things). These measures are expected to grow B2B sales to over 50 percent of all sales in fiscal 2016, the company said.

In the B2C market, Toshiba will transition from the current business model, withdraw from unprofitable markets, and optimize sales bases in low profit countries and regions. These measures would reduce the number of sales bases around the world to 13 in fiscal 2014 from 32.

Toshiba noted that the PC business reported positive operating income in the first quarter of this fiscal year, as a result of measures initiated last year. However, these transformation measures are necessary to support the business in securing consistent profit with the PC market expected to see a continuing trend to modest growth rates.

Separately, the company announced that its Board of directors, at today's meeting, has provisionally decided to pay an interim dividend of 4 yen per share, same as last year, to shareholders on record of September 30.

In Japan, Toshiba shares gained 4 yen or 0.82 percent, and settled today at 494.50 yen.

Copyright RTT News/dpa-AFX

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