"This is a necessary thing to do to ensure the company survives for the next 100 years," President
The early retirement plan aims to cut labor costs and targets domestic employees aged 50 and over working at Toshiba group firms. Most of the job cuts will be in back-office departments, it said, adding that it plans to complete the process by the end of November.
"It was an agonizing decision to make," Shimada said.
The company will instead devote its resources to growth areas, including power semiconductors that can be used in electric vehicles, artificial intelligence products and renewable energy equipment, as well as quantum technology.
In another streamlining effort, four main subsidiaries operating in business areas such as energy and infrastructure are expected to be integrated into Toshiba.
The company also said it will consolidate its headquarters functions in
Toshiba's delisting in December came after a
The delisting made it easier for Toshiba executives to focus on its management and make quick decisions, as it now only has to consult with a sole shareholder, JIP, rather than being interfered with by activist shareholders like before, Shimada said.
"We put 100 percent into coming up with this plan so that we can realize the best version of Toshiba," Shimada said. "We will put the company back on a growth track."
Toshiba said it posted a net loss of
Under its medium-term business plan, the company aims to increase its operating profit to
The company plans to raise its operating margin to 10 percent in fiscal 2026 from 1.2 percent in fiscal 2023, setting itself the goal of its focus areas, such as power semiconductors and digital operations, reaching at least 10 percent, with its less profitable businesses such as elevator manufacturing hitting at least 5 percent.
==Kyodo
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