Toshiba Cuts 6,800 Jobs

TOKYO - Scandal which hit Toshiba is to slash 6,800 jobs as it undergoes a restructuring that is expected to see it post a net loss of 550 billion yen for the year to the end of March.

As released by SkyNews, this giant Japanese company will cut the jobs in its personal computer, video product and consumer electronics businesses, representing 3 percent of the firm's employees.

It comes in the wake of a scandal which saw Toshiba admit that it inflated its profits by 152 billion yen over several years going back to 2008.

The overhaul will see the sprawling conglomerate focus on chips and nuclear energy. The firm also said it would sell its television manufacturing plant in Indonesia.

Eventual job cuts including previously announced numbers and those seeking voluntary retirement could total more than 10,000.

"By implementing this plan, we would like to regain the trust of all stakeholders and transform ourselves into a robust business," Toshiba said in a statement.

The 140 year old firm said it expected the sharp losses for the current fiscal year due to restructuring costs. For 2014/15 it reported a 38 billion yen loss.

An independent probe earlier this year into the Toshiba accounting scandal found evidence of dysfunctional governance and a culture of discouraging employees from questioning superiors.

Earlier this month regulators said the company would face a record 7.4 billion yen fine over the episode.

Toshiba employed around 11,000 people in Europe as of March this year, out of a total global workforce of about 200,000.