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Toshiba to withdraw from British nuclear plant, will cut 7,000 jobs

Staff Writer |
Toshiba Corp. said Thursday it will withdraw from its nuclear plant construction business in Britain and sell off a U.S. liquefied natural gas operation as part of a business reform plan.

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In its just-unveiled five-year business strategy plan through fiscal 2023, the Japanese technology conglomerate also said it plans to cut about 7,000 jobs to streamline its operations. A large part of the cutbacks will come through natural attrition, it said.

The company released the outline of its planned restructuring as it reported financial results for the April-September period. It posted 1.08 trillion yen ($9.5 billion) in net profit, a sharp turnaround from a loss of 49.79 billion yen a year earlier, as it completed the sale of its chip subsidiary.

Its group operating profit tumbled 80.7 percent to 6.98 billion yen on sales of 1.78 trillion yen, down 5.1 percent.

For the current fiscal year ending next March, Toshiba cut its profit estimate citing various restructuring-related costs including a 93.0 billion yen loss expected from selling the U.S. natural gas business, projecting a net profit of 920 billion yen against the previously estimated 1.07 trillion yen.

The boss of struggling Toshiba said Thursday he would cut 7,000 jobs over the next five years as the Japanese engineering firm pulled out of foreign investments and downgraded its annual profit forecasts.

"Over the next five years, we expect a reduction of 7,000 jobs," many coming from early retirement, CEO Nobuaki Kurumatani told reporters in Tokyo.

In addition, efficiency gains from improved IT and the planned retirement of about 3,000 employees every year will contribute to the job cuts, he said.

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