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Toshiba cuts 7,800 jobs following accounting scandal

Toshiba cuts 7,800 jobs following accounting scandal

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Toshiba's consumer electronics division is struggling. Toshiba's former president and CEO Hisao Tanaka stepped down six months ago today, following a disclosure that the company had declared $1.2 billion in false profit. The fallout from the scandal is hitting employees directly today as part of a "revitalization action plan." Toshiba is cutting 7,800 jobs in total as part of a major restructuring for the Japanese tech firm, with the vast majority affecting employees in the company's consumer electronics division.

Toshiba is now looking to offload some of its divisions, including its health care products and its PC business. Toshiba appears to be reluctantly holding onto its TV division, but it plans to end all sales outside of Japan and license its brand overseas. Toshiba has been doing this in Europe and North America for some time, but it's TV business in Asia will now shift to this model.

Alongside the job cuts and division adjustments, Toshiba says the changes will contribute to a loss of $4.5 billion for the financial year that ends in March. That's a significant loss that underlines the challenges Toshiba faces as it attempts to realign its TV, PC, and healthcare businesses next year.