Toshiba Corp. is reportedly set to trim its workforce in Japan by 5,000 employees, representing about 10% of its total staff, in a significant move that deviates from Japan’s historical reluctance to layoffs. The decision reflects a changing landscape amid persistent labour shortages in the country, with Toshiba aiming to streamline operations by downsizing noncore businesses.
If carried out, this initiative would stand as one of the largest job reduction efforts in Japan this year. The Tokyo-based company expects to face a one-time cost of approximately ¥100 billion (₹5,400 crore) as it moves forward with the restructuring, according to a report by Nikkei.
The move by Toshiba marks a notable departure from Japan’s tradition of strong worker protection laws, with other blue-chip companies also embracing similar strategies amid the ongoing labour shortage. Factors such as union demands for pay raises, increased worker mobility, and a reliance on foreign workers are contributing to this shift in the country’s labour practices.
In recent months, several prominent Japanese firms, including Shiseido Co., Omron Corp., and Konica Minolta Inc., have announced plans for job cuts.
Toshiba, once a major employer in Japan, faces ongoing challenges as it looks to streamline operations and refocus on infrastructure and digital technology. Despite its diverse portfolio, including nuclear turbines, batteries, and quantum computing technologies, the company has grappled with management missteps and scandals, such as falsifying financial statements in 2015.
Efforts to recover from losses, including the sale of its memory-chip business, have been complicated by issues in its nuclear business. Executives are now pursuing a $15 billion buyout to take the company private, aiming to turn the page on a troubled period in its 149-year history.
