Japan's Toshiba on Thursday announced that it will cut up to 4,000 jobs domestically amid restructuring efforts under new ownership, reported Reuters. As per the report, Toshiba would relocate office functions from central Tokyo to Kawasaki, west of the capital, and target an operating profit margin of 10% in three years.
The firm delisted in December following a $13 billion takeover by a consortium led by private equity firm Japan Industrial Partners (JIP). The takeover came after a decade long scandal and upheaval.
As per Reuters, the consortium's efforts to engineer a turnaround at Toshiba are seen as a test for private equity in Japan, which used to be seen as "hagetaka" or vultures due to its rapacious reputation.
In Japan, PE firms are increasingly seen as an option for companies disposing of non-core assets or lacking succession candidates. Companies including photocopier maker Konica Minolta, cosmetics firm Shiseido and electronics firm Omron have also announced job cuts in recent months.
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