Toshiba saw record loss in 2015, promises to cut 5% of its workforce

Amid the aftermath of a $1.2 billion financial scandal which led to the resignation of former Toshiba CEO Hisao Tanaka, Japanese tech giant Toshiba has posted a record loss and promised to cut around 5% of its present workforce.

Toshiba, which is typically praised for the quality of its consumer goods including laptops and desktop PCs, has seen a significant decline in recent years following intense competition from rivals and general economic instability. The announcement earlier in 2015 that the company had falsely recorded $1.2 billion in false profits shook investors' faith in the company, further exacerbating Toshiba's fiscal decline.

Amid financial distress and corporate shakeups, Toshiba has posted a record loss for FY2015 at around $4.53 billion. To address this crisis, the company has pledged to restructure its workforce, selling off its overseas television production and cutting around 6,800 jobs, which numbers its layoffs in 2015 at around 10,000.

At a press conference, Toshiba's CEO Masashi Muromachi, who has served since Tanaka's resignation in July 2015, told reporters the restructuring would serve to boost the company's reputation and revitalize its operations.

"By implementing this plan, we would like to regain the trust of all stakeholders and transform ourselves into a robust business," said Muromachi.

Despite financial and corporate woes, Toshiba has continued research and development of new product lines. In October, the company revealed its new two-in-one 12-inch Windows 10 tablet, which it had previously teased at Microsoft's 2015 IFA keynote.

Source: Reuters

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