After $4.5 billion loss, Toshiba's cutting 7,800 jobs and streamlining its PC business

Toshiba is entering a major restructring mode, as the Japan-based company announced it will streamline its PC business as part of its plans. The news comes as Toshiba recorded a massive 550 billion yen ($4.5 billion) loss for 2015 and will cut 7,800 jobs by March 31, 2016. 6,800 of those jobs losses will come from Toshiba's Lifestyle brands, while another 1,000 job cuts will come from its corporate workforce.

Part of Toshiba's issues are due to an accounting scandal that became public earlier this year, where the company admitted it falsely reported a total of $1.2 billion in profits over the last several years. Today, the company announced that it would be pulling back on its PC operations to concentrate on the enterprise market, although it will continue to sell PCs to consumers in the U.S. and Japan.

Recent, but unconfirmed, reports claim that Toshiba has entered talks with Fujitsu and VAIO to merge its PC businesses into one company that would have the VAIO name and would launch sometime in 2016.

Source: Toshiba

  • Poor innocent employees always pay the price for cover ups and **** ups that happen at the top. Just not fair.
  • What you say has merit, but consider if the cover up occurred so that there was money to prevent having to cut those jobs sooner... They might have fired those employees a year ago.
    I'm not saying its a good thing they've done, just saying what if.
  • Lol, get real, the cover up was so that the stock of the guys at the top, including those bonus stock grants would hold value....
  • It's likely that you are correct. They bought themselves time and money. I was just saying that the employees could have been affected even sooner, so at least they got Christmas LOL. Either way it does suck for them. Corporate greed hurts everyone, except the corporations and this that represent them at the highest levels.
  • Yeah they innocennt but when a company suffer huge loss they have no choice. Since they can't pay their worker.
  • What?? I have a fridge with their name on.
  • I have a tv with their name on it.
  • I have a Laptop with their name on it. Posted via the Windows Central App for Symbian
  • Good. I had a laptop that overheated and died after just two years.
  • You're happy that so many jobs are lost because one laptop overheated? Anyway I think a lot of PC makers should cut back on the amount of models and focus on less but higher quality.
  • Except they have if haven't noticed qosimo hasn't been available in a while
  • I have always bought Toshiba laptops and they have always been great laptops that lasted years with extensive use of heavy programs.  Their lower-end devices were crap though and felt like empty plastic ...but I guess people get what they pay for.  Hope they're restructuring works out for the them and their consumers.  That said, I am going for Surface for my next portable.
  • I had a Toshiba laptop that lasted for eight years of constant heavy use. Every product from every company can have an occasional lemon.
  • I have a 10½ year old Toshiba notebook that still works. Posted from my Moto X Pure Edition via the Windows Central App for Android
  • Lol, I've had the opposite experience. My Satellite is going on 4 years and it's still working just fine. Posted via the Windows Central App for Symbian
  • I have a low end one. The hinge is broken on it. The screen is held up by will power.
  • Is it just me or are Japanese companies just awful and cheaply run? Nintendo, Sony, Toshiba etc, All posting a lose or bad quarters for awhile now.
  • The Koreans are outdoing them. You can find US companies not doing so hot either. Look at gateway, hp, yahoo, etc. Dell went private so hard to tell how they are doing.
  • Going private usually means they are doing good.
  • A lot of that tends to be because many Japanese companies are controlled by family dynasties. Also, yes, many are very cheaply run to their detriment.
  • As someone who has worked for two Japanese companies (Heating and Air division) Sanyo/Panasonic and Fujitsu I found a culture of elitism. They truly feel their **** doesn't stink and nobody but a Japanese born person can run their companies or have solid business ideas. They have no clue how to adjust on the fly. They are at a loss of how to adjust to complete now with the new competition from Korea or China. They have great engineers but are horrible in marketing and sales.
  • Heard of Toyota production system? Entire world still trying to adopt it!!
  • That is kind of scary and unfortunately matches an attitude my husband ran into when he was consulted by Namco on an arcade game idea. Can't remember the game but it was poorly designed for the arcade scene, he told them exactly why it would tank and it did. The was no listening going on. I don't think the entire culture is elitist but it's sad when it costs people their jobs.
  • I've had similar experiences, albeit in a very different industry. They like to forget that they lost WWII, and their subsequent economic "Miracle" was driven by money and ideas pumped into Japan by the US, combined with full access to the US' markets, while hiding from competition behind protectionist walls. They are very slow to make decisions and move via ' group-think' instead of by leadership and vision. Now that their economy had had to open up and other Asian nations are challenging their export clot they are losing badly, but still they consider themselves Superior. They are heading for a serious day of reckoning. Once their management stoke it's forced to change their excellent engineering and unique sense of design will probably make them a formidable economic powerhouse again.
  • Toshiba: The winner of 2015's "Don't let the door hit your **** on your way out" award.
  • Wait. They will only sell computers in the US and Japan now?
  • Sucks for those who will be laid off, alot of hard working families... As I imagine the bulk of it would be in production. Which will most likely go to ODMs.
  • Sad, but if Lenovo was able to come in and make IBM's strictly "business" computing business "cool" again, I won't say it's over just yet for Toshiba, but they may want to make some changse in their leadership, and quick. As it stands now, they don't offer anything that's remotely appealing to....ANYONE.
  • Isn't that the truth. They had a better chance with tweaking qosimo line
  • VAIO will be back? Cool.
  • How can we be certain none of those billions in loses aren't a result of the meltdown in Fukushima?
  • Why does it matter if it's Fukushima or say an over-investment in staff toiletpaper?
  • I'd be thinking more of covering up the huge losses they had investing in the failed HD-DVD venture, they spent billions heading it up...
  • Poor employees
  • My first two laptops more than a decade ago were Toshiba. They had excellent build quality and good keyboards. Then they started to produce cheap plastic Satellite models with terrible keyboards and I never looked at one of their products again. Not surprised.