Japan’s Toshiba On Thursday, announced plans to reduce its domestic workforce by up to 4,000 positions as part of its accelerated restructuring efforts under new ownership.
The industrial conglomerate had been delisted in December following a $13 billion takeover by a consortium led by private equity firm Japan Industrial Partners, marking the culmination of a decade marred by scandal and tumult.
The consortium’s endeavors to revitalize Toshiba are being closely watched as a litmus test for private equity in Japan, a sector previously perceived as “hagetaka” or vultures due to its aggressive reputation.
The restructuring initiative represents a reduction of up to 6% of Toshiba’s domestic employees. Additionally, the company announced plans to shift office functions from central Tokyo to Kawasaki, situated west of the capital, and aims to achieve an operating profit margin of 10% within three years.
In Japan’s traditionally conservative business landscape, private equity firms are increasingly viewed as a viable option for companies looking to divest non-core assets or grappling with succession challenges.
Recent months have seen a slew of companies, including photocopier maker Konica Minolta, cosmetics firm Shiseido, and electronics firm Omron, announcing workforce reductions.
