TOKYO – Japanese technological conglomerate Toshiba announced on Thursday it will cut 7,000 jobs over the next five years under its new mid-term business plan, which also includes the withdrawal from several energy sector projects.
Toshiba will carry out cutbacks with an early retirement plan for 1,060 employees of the parent company as well as subsidiaries Toshiba Energy Systems & Solutions (ESS) and Toshiba Digital Solutions (TDSL) and some subsidiaries from 2019, it said in a statement.
Over five years, it aims to cut 7,000 jobs or 5.3% of the workforce, which stood at 132,000 employees in June.
The early retirement program seeks to optimize its workforce, reorganize product bases and reduce the number of subsidiaries.
Toshiba also announced its withdrawal from a nuclear power plant construction project in the British county of Cumbria and its plans to wind up NuGeneration, the subsidiary leading the project.
In addition, the group has decided to exit its liquefied natural gas business in the United States, which will have a negative impact of 93 billion yen ($818 million).
Toshiba made the announcements the same day it presented its financial results for the first half of the Japanese fiscal year (April-September) where it recorded a net profit of 1.08 trillion yen mostly due to the sale of its memory chip business.
The company’s operating income was recorded at 7 billion yen and declined by 29.2 billion yen year on year, while net sales decreased by 95.8 billion yen year on year.