Toshiba To Cut Nearly 5,000 Jobs
Sep. 13, 1999
TOKYO (AP) _ Japan's Toshiba Corp. plans to slash nearly 5,000 jobs and omit its interim dividend payment for the first time in half a century in response to deteriorating earnings prospects.
Citing worsening conditions in the semiconductor market, Toshiba said Monday it expects a consolidated loss of 15 billion yen, or $139 million, and a pretax loss of 10 billion yen, or $92.6 million, for the fiscal year ending in March 2000.
Previously, Toshiba had forecast a group net profit of 25 billion yen, or $231 million, and a pretax profit of 40 billion yen, or $370 million.
Poor short-term prospects have led to stepped-up restructuring, said Toshiba President Taizo Nishimuro, and the company will slash its work force to 58,600 by March 2000 from the current 63,200.
It was unclear if the job cuts would come from layoffs or attrition.
The omission of the interim dividend will be Toshiba's first in 49 years. The company hasn't yet decided how much its dividend will be at fiscal year-end.