2/3/2016 Electronics & Technology Giant Toshiba Cutting 5% Of Workforce | Newsaratti http://newsaratti.com/electronics-technology-giant-toshiba-cutting-5-of-workforce 1/3 Weather Report , 0°F, Can't get any data. 08 Jan, 2016 by Freedom Chevalier Print this article Font size 16 + Electronics & Technology Giant Toshiba Cutting 5% Of Workforce Move comes amid aftermath of accounting scandal and record loss Toshiba Corp. announced plans to cut nearly 8,000 employees, or 5% of its workforce, and close their production facility in India. Still reeling from the decommissioning of the Fukushima power plant, which played a prominent role, the announcement follows on the heels of one of the biggest Japanese corporate scandals in recent years. And it doesn’t stop there. Toshiba also reported a net loss of 550 billion yen, ($458 million US) – the largest recorded loss in the company’s 140-year history. In February, suspecting accounting irregularities, the Securities and Exchange Surveillance Commission (a Japanese Commission, overseen by the Financial Services Agency responsible for “ensuring fair transactions in both securities and financial futures markets”) began an investigation into the electronics and technology giant. Toshiba Corp., after publicly acknowledging the situation, simultaneously launched an internal investigation in April. When the depth and scope of the irregularities became apparent, Toshiba handed the investigation over to an independent, third-party committee in May; delaying the announcement of their 2014 earnings. A report issued by the committee found the company records contained numerous “inappropriate” accounting entries for the 2009 – 2014 period, which showed a staggering ¥152 billion ($1.26 billion US) profit. It named top executives at Toshiba, including then-president Hisao Tanaka and predecessors Atsutoshi Nishida and Norio Sasaki, among those responsible for the reporting manipulations. It also claimed the company lacked an internal structure necessary to halt the deception, as junior managers were unable “to go against the bosses.” Hisao Tanaka, refusing to address the specific details in the report, insisted he did not explicitly issue a direct order to his junior employees on the issue. Mr. Tanaka said he was “deeply sorry for all the inconvenience and concern that we have caused our investors” before stepping down as president. Vice-Chairman Sasaki, Advisor Nishida, and six other directors also resigned. On December 21, Toshiba Corp. announced they had reached an agreement to sell PT Toshiba Consumer Products Indonesia, its Indonesian manufacturing plant for televisions and twin-tub washing machines to China-based Skyworth. The sale, which also grants Skyworth the use of the Toshiba brand name throughout Asia, except China itself, will be finalized next year. Toshiba’s mainstay business, the production of memory chips, is struggling to generate more money for an industry that “faces intense global competition and increasing price pressures,” according to a recent report from Moody’s Investor Service. The newly announced job cuts, which could exceed 10,000 at the final tally, will be across several business verticals, including video production, consumer electronics and personal computers. While a majority of these cuts are expected to come from early retirement, a significant number of overseas positions will be affected as well. Toshiba remains on the Tokyo Stock Exchange, with the added designation of “security on alert.” Toshiba has 12 months to implement enhancements to internal accounting practices to ensure a repeat situation will not occur. Failure to do so would Be the first of your friends to like this. Like What's Popular Addiction: The Beautiful Face of Addict Puppy Bowl XII Preview: Team R Team Fluff Kilt Feeling Fascination: A Love F Laura Sullivan, Grammy Winner Within For New Release Stripping Back Humanity: The W Process Of Artist Kyien Fox Rosie O’Donnell, Taking The Par Road Trepic Wants To Change The Wa Travel UConn: Return Of Racial Segreg Shakil Could Be Innocent Benoit Violier: World’s Best Chef Suicide Subscribe Today! Keep up-to-date on News, Sports Entertainment & More with News NEWS POLITICS BUSINESS ENTERTAINMENT STYLE LIFE HEALTH SPORTS COMMUNITY VOICES HO