Toshiba expects billion dollar loss

Toshiba expects billion dollar loss

Japanese technology company Toshiba expects a huge loss for its current fiscal year, which ends in March 2016. The loss is a consequence because of an accounting scandal, which in turn led to a restructuring program.

4.2 billion euro loss

The loss would be 550 billion yen (4.2 billion euro), but to compensate for the loss, Toshiba has decided to cut 6,800 jobs in its Lifestyle division - responsible for all consumer electronics and household appliances. It will also sell a factory in Indonesia and close and sell a Tokyo-based research center. By the end of the fiscal year, another 1,000 jobs in the main office will be cut.

 

How many people will actually lose their job, is not certain as part of the jobs will disappear through the sale of a specific part of the company. All in all, Toshiba currently employs some 200,000 people all across the world.

 

The loss and job cuts are all fallout from an accounting scandal revealed at the start of the year. The Japanese company had artificially bloated its financial numbers for years, adding 152 billion yen (1.2 billion euro) of additional, fictitious profit.

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