Toshiba to Lay Off Thousands as Part of a 5-Year Restructuring Plan
The news comes as part of the Japanese conglomerate’s pledge to transform itself in a new five-year plan. The plan, announced Thursday, includes the removal of “non-focus businesses” like Toshiba’s British nuclear power plant and U.S. liquefied natural gas businesses.
Toshiba will shut down the British plant, NuGeneration Ltd., early next year, having failed to procure a buyer. The U.S. business has not yet been sold, but Toshiba anticipates a loss of 93 billion yen ($816 million).
In good news for shareholders, Toshiba plans to buy back up to 40% of its own shares as part of a long-term goal of increasing dividends.
The conglomerate also planned for capital expenditure of 810 billion yen ($7 billion) and research and development investments of 930 billion yen ($8 billion) to “grow new businesses, improve profit margins, and generate future cash flows,” Toshiba stated. Future investments will be focused on energy storage, semiconductor technology, and precision medicine.