Toshiba to Streamline Personnel Structure

Toshiba to Streamline Personnel Structure

Toshiba recently announced its business results for fiscal year 2023 and introduced the Toshiba’s Revitalization Plan to make the company leaner and stronger.

Toshiba posted net sales of JPY￥ 3285.8 billion (USD$ 21.1 billion), experiencing a slight drop of 2% compared to the prior year. Despite higher sales in the Printing and Infrastructure Systems segment, sales in Toshiba Carrier Corporation decreased dramatically, resulting in an overall decline. Operating income totaled JPY￥ 148.4 billion (USD$ 0.95 billion), down by 15% year-on-year.

Koji Ikeya, Corporate Senior Executive Vice President, acknowledged the return on sales (ROS) of 4.5% since Toshiba’s transition to a new management structure. However, he emphasized the need for further provisions and risk management to improve profitability. To achieve the next medium-term business plan, Toshiba announced the “Toshiba Revitalization Plan.” Toshiba’s management believes that, following privatization, the company has the opportunity to “return to what Toshiba should be” through this plan.

As part of the plan to simplify its corporate structure, Toshiba will conduct a personnel optimization by the end of fiscal year 2024, aiming to reduce staff numbers by approximately 20%. The company will redefine the core functions of its headquarters while eliminating duplicated or unnecessary roles. An Early Retirement Incentive Program and Outplacement Support initiative will be launched for a limited period, and up to 4,000 people within the Toshiba Group who meet the criteria may be eligible for the program.

Other than adjustment to the personnel, Toshiba will implement other measures to streamline corporate operations, including integration of the four key group companies to emphasize the concept of “One Toshiba”. By eliminating low-execution plans, insufficient loss control and high fixed costs, Toshiba expects an ROS of 10% in the medium to long term.

Related:

• Toshiba Tec Announces Financial Performance for 2023
• Toshiba Provides Update on Integration with Ricoh
• Toshiba Delisted from TSE

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