Toshiba Discloses Domestic Employee Fraud

Toshiba Discloses Domestic Employee Fraud

Toshiba Tec Corporation published a recent announcement of the discovery of a fraudulent scheme conducted by its employee in Japan.

In the official notice, Toshiba has confirmed that the fraud involves a domestic employee who fabricated orders over seven years to misappropriate company assets, causing financial damages totaling approximately JPY 200 million (USD 1.3 million) between fiscal 2017 and 2024. The company confirmed the employee resold goods for personal gain, with the misconduct uncovered during an internal audit triggered by the individual’s own confession.

In the same notice addressing the incident, Toshiba stated it has taken “strict disciplinary action” against the employee and pledged to strengthen internal controls, including revised compliance protocols and enhanced staff training. While the financial impact of the fraud spans multiple fiscal years, the company emphasized that adjustments for the losses were “incorporated into the financial results for the third quarter of the fiscal year ending March 2025,” adding that its full-year earnings forecast remains unchanged.

The disclosure follows Toshiba’s third-quarter earnings report earlier in February, which highlighted steady growth despite operational challenges. For the first nine months of FY2024, the conglomerate reported net sales of JPY 425.5 billion (USD 2.8 billion), a year-on-year increase of JPY 28.8 billion (USD 190 million), while net profit surged to JPY 27.2 billion (USD 180 million)—a stark reversal from last year’s JPY 14.7 billion (USD 97 million) loss.

Notably, the Workplace Solutions division—a segment linked to office printing technologies—saw operating profit decline by JPY 1.4 billion (USD 9 million) due to foreign exchange pressures and rising costs, even as sales grew. Toshiba attributed its broader profitability to cost-cutting measures and digital transformation efforts, including upgrades to its e-BRIDGE print management platform.

While the company maintained its full-year sales forecast of JPY 572 billion (USD 3.8 billion), the employee fraud case casts a shadow over its governance reforms. Toshiba assured stakeholders that the incident’s financial ramifications are “fully accounted for,” but analysts warn that reputational risks could linger as the firm seeks to rebuild trust.

Related:

• Toshiba Reports Steady Growth in Q3
• Toshiba Unveils Next-Gen Barcode Labeling Thermal Printers
• Toshiba Provides New Printing Solution for Hospitality Services
• Toshiba Introduces Compact Multifunction Printer for SMBs
• Toshiba to Raise MFP Prices
• Toshiba Records Profit Surge in Q1 2024

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