Toshiba predicts record loss as it outines restructuring

Toshiba Corp said on Monday that it expects to report a record annual loss of 550bn yen (£3bn) as it carries out a restructuring to streamline its focus on chips and nuclear energy following a $1.3bn (157bn yen) accounting scandal.

The Japanese firm, which expects sales to drop 6.8% to 6.2 trn yen, put the wider loss down to restructuring costs and a deterioration in its semiconductor and infrastructure divisions.

Toshiba plans to cut up to 7,000 jobs in consumer electronics while 5% of its global workforce could be culled by the end of the financial year.

The group also said it intends to sell its television manufacturing plant in Indonesia and stop sales of its televisions in overseas markets.

“By implementing and resolutely executing this action plan, Toshiba hopes to regain the trust of shareholders, investors and all stakeholders, and to achieve a strong corporate institution,” the company said.

Shares in Toshiba fell nearly 10% on Monday.