Toshiba has announced that it will shed 6,500 jobs from its global workforce and take a financial hit of ¥550bn ($4.5bn) as part of a major restructuring effort.
The drastic measures have been forced on Toshiba after a major accounting scandal came to light earlier this year showing that revenues had been overstated by as much as $1bn.
Now, thousands of jobs will be cut as part of an effort to sort the company out and get it back on a sound financial footing.
Toshiba explained that the job cuts will be made in the company’s Lifestyle business, where 30 percent of staff will be let go by 31 March.
The firm will also reduce its operations in the PC market and focus more on the enterprise, and limit its consumer operations to just the US and Japan.
“The PC business will concentrate on [business-to-business markets] where further global demand is expected, and build up its enterprise customer base as a means to generate healthier profit,” Toshiba said.
“[Business-to-consumer] operations will concentrate in the Japanese and US markets where stable business can be expected.”
Toshiba will also consider third-party alliances where relevant to reduce the overall cost of its PC operations.
Numerous other initiatives are being taken at the company to reduce costs, such as scaling back TV production and considering the sale of assets or stock where relevant, in an effort to reduce overheads and shore-up its financial situation.
Better corporate governance procedures relating to accounting and expenses are being introduced to avoid a repeat of the fiasco earlier this year.
Toshiba chief executive Hisa Tanaka resigned in July in the wake of the scandal and the company issued an apology to customers and investors.
“Toshiba Corporation expresses sincere apologies to our shareholders, customers, business partners and all other stakeholders for any concern or inconvenience caused by the investigation into the appropriateness of its accounting,” the firm said at the time.