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Toshiba to slash 900 jobs as part of restructuring PC segment [Big News Network (United Arab Emirates)]
[September 19, 2014]

Toshiba to slash 900 jobs as part of restructuring PC segment [Big News Network (United Arab Emirates)]


(Big News Network (United Arab Emirates) Via Acquire Media NewsEdge) TOKYO - Japanese technology giant Toshiba Corporation Thursday announced plans to cut its personal computer (PC) workforce by about 900 people and sales bases by more than half as it further steps up restructuring of its struggling consumer PC operations.



Shifting focus from consumer PC business, Toshiba plans to focus instead on the profitable business to business (B2B) field. The downsizing of staff is aimed at controlling the volatility in the B2C business, Toshiba said in a statement.

As part of the restructuring move, Toshiba also plans to withdraw from 19 unprofitable markets out of 32 sales bases around the world during its 2014 fiscal year, which ends March 31, the company stated without identifying the markets.


"These moves are expected to support the business in securing consistent profit in the future," Toshiba stated.

The company estimated that the downsizing of staff by 900 personnel would result in saving more than 20% of the PC business headcount excluding manufacturing, and "is expected to cut fixed costs by more than 20 billion yen($186 million) against FY2013.

Toshiba makes laptops such as the Portege, Kira and Satellite brands, including the first laptop with a 4K display, the P50T-BST2N01.

It's also known for its popular Dynabook brand of PCs in Japan.

In the B2B market, Toshiba plans to cultivate new customers and businesses by expanding its "wide product range, from workstations to tablet PCs, along with its diversified business-user sales channels, and enhance solutions by utilizing the diversity of its business partners in the current business".

The B2B promotion strategy will see Toshiba offer innovative and appealing IoT (Internet of Things) products and services in such areas as social infrastructure, the cloud, healthcare and home appliances.

"By deploying IoT which interconnects technologies in various business domains, Toshiba will accelerate building a business model that is not dependent on sales of PC hardware alone but that incorporates development of core technologies to deliver enhanced services and solutions," the company stated.

These measures are expected to help Toshiba grow B2B sales to over 50 percent of all sales in FY2016.

Looking to the future, Toshiba plans to concentrate on developed countries for its consumer products as it hopes to benefit from collaboration with its B2B business in these markets.

The company plans to economise on procurement and distribution costs by narrowing the number of platforms, optimizing global business processes, and scaling back the PC business head office by locating some of its functions outside Japan.

As a result of its cost cutting and restructuring measures initiated last year, Toshiba's PC business reported positive operating income in the first quarter of this fiscal year.

"However the PC market is expected to see a continuing trend to modest growth rates, and these transformation measures are necessary to support the business in securing consistent profit," Toshiba stated.

Toshiba reported that in the April-June quarter PC sales had "improved significantly" due to brisk demand in Japan. It recorded PC sales of 167.6 billion yen, up from 155.5 billion yen a year earlier, but still down from 175.7 billion yen in the same period during 2012.

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