Toshiba is considering to conduct a mass layoff, which could affect thousands of domestic employees. This effort is believed to be a part of the Japanese electronics giant's restructuring.
Toshiba Mass Layoff Could Terminate 5,000 Domestic Workers
Nikkei learned about Toshiba's alleged plan to terminate 7% of its domestic workforce in Japan. If this is true, then 5,000 domestic workers would be affected.
Toshiba is expected to target employees in back-office departments in its head office. However, individuals familiar with the plan said that the appliance manufacturer might also seek volunteer retirements.
They added that private equity manager Japan Industrial Partners led a Japanese consortium to take the conglomerate privately. This could streamline overlapping departments to create a foundation for renewed growth focusing on digital technology and infrastructure.
It Could Be Toshiba's Largest Layoff
If it is initiated, the alleged mass layoff would be Toshiba's biggest termination in Japan ever since it experienced irregularities back in 2015. Yahoo Finance reported that it would also be one of Japan's largest mass layoffs in 2024.
Toshiba's rumored mass layoff is rare since Japan has some of the world's strictest laws protecting workers. People familiar with the matter said Toshiba could start discussing the mass layoff with its labor union in May.
Their discussions are expected to include how many positions in each business unit would be affected. This means that the estimated 5,000 employees could be increased or decreased.
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