Dive Brief:
- Toshiba says it will book a record net loss this year and cut around 5% of its workforce, Reuters reports.
- The company is still reeling from a $1.3 billion accounting scandal announced in April.
- Toshiba has been working to shift its focus to chips and nuclear energy to help turn the company around, but analysts say a complete recovery appears unlikely.
Dive Insight:
On Monday, Toshiba said restructuring will push its loss to about 550 billion yen ($4.53 billion). Shares have sat at 40% below their value since the company disclosed accounting problems in April.
The company also announced it will cut 6,800 consumer electronics jobs. In all, more than 10,000 people will have been laid off by the end of the year.
"By implementing this plan, we would like to regain the trust of all stakeholders and transform ourselves into a robust business," Chief Executive Masashi Muromachi said.
But analysts say recovery will be challenging. Japanese consumer electronics makers have lost significant market share over the past decade to "more nimble and innovative rivals."
