Published in News

Axe fails at Toshiba

by on21 December 2015


6,800 out into the cold and snow at Christmas

More than 6,800 employees at Toshiba are paying the price for not standing up to corporate executives who were encouraged to cook the books.


The executives were told to fudge targets and reported sales which were over estimated by $1.3 billion. They all did what they were told until the whistle was blown on the cover-up.

Now the company has had to cut back to make up for all the lost cash and it seems it is the workers who will pay the price.

Toshiba will slash around 6,800 jobs in its consumer electronics operations it says that the moves will turn the sprawling conglomerate into a leaner company focusing on chips and nuclear energy.
Toshiba has confirmed that it is flogging its TV manufacturing plant in Indonesia.

Due to costs of restructuring, which also include the sale of its TV manufacturing plant in Indonesia, Toshiba said it expected a net loss of around $4.53 billion in this fiscal year ending in March. So it is bleak for the company and beak for its employees.

Reports into how the incident happen focus on the Japanese culture of obeying authority. Apparently no one stood up as managers were encouraged to effectively make up figures to meet impossible targets. This culture worsened after Toshiba’s nuclear disaster at Fukushima saw managers put more pressure on for good rather than accurate figures to make up for the lost cash.

Last modified on 21 December 2015
Rate this item
(2 votes)

Read more about: