Dive Brief:
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Citing lost earnings power, Toshiba's new CEO said the company may lay off staff in its home appliances, TV and PC businesses.
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Masashi Muromachi is working to overhaul the company after a $1.3 billion accounting scandal.
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Muromachi said he may look to nuclear operations to help stabilize the company.
Dive Insight:
Muromachi said he is setting up a number of restructuring steps to help revive the company. Toshiba has already been placed on the Tokyo Stock Exchange's watch list, which makes it nearly impossible for it to raise funds through bond and equity issuance. Muromachi said the company may tap into bank loans if needed.
"The latest accounting problems might have been driven by the fact that some of our businesses have lost earnings power,” Muromachi said. "We must urgently take action in these businesses."
As part of its overhaul, Toshiba also launched a new management team.
Muromachi said the company may lean on its nuclear power business, though the Fukushima disaster and the U.S. shale boom have reduced the appeal of nuclear power, so that action may not be fruitful. A significant drop in PC sales in the U.S. is also affecting the struggling company.
