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Toshiba Announces 5K Job Cuts, Shakes Up Japan's Corporate Scene

Toshiba Corp. is cutting 5,000 jobs in Japan, or about a 10% share, the Nikkei reported, underscoring the fading stigma surrounding layoffs in a country struggling with a chronic labor shortage.

This year could bring one of Japan’s biggest job cuts. The Nikkei did not say where it obtained information that the Tokyo-based company was cutting back on non-core businesses and would write off one-time costs of about ¥100 billion ($650 million).

Layoffs are rare in a country with some of the strictest worker safety laws in the world. But a growing number of Japanese firms are downsizing as historic labor shortages ease the pain of such measures. Companies are winning overall wage increases, labor mobility is on the rise and more companies are hiring foreign workers to fill positions in industries ranging from retail to technology.

In recent months, companies such as Shiseido Co. cosmetics company, Omron Corp.; thermometer manufacturer, and Konica Minolta Inc. making cartoons for layoffs. Toshiba, once one of the country's largest employers, is trying to cut costs across its broader operations, focus on its manufacturing and digital technology activities, and engage with customers and small businesses the bulk sales figured out ahead of the listing in December.

Toshiba is compiling its mid-term strategy although no concrete decisions have been made, a company representative said in an emailed statement Wednesday.

Toshiba, a leader in DRAM and NAND memory, laptops, and rice cookers, has struggled for years with management missteps and scandals. handed down the country's largest penalty for filing a false financial statement in 2015, then convicted to sell its crown jewel memory-chip business, Kioxia Holdings Corp., to offset losses due to unhealthy expansion in the nuclear sector.

The company is trying to close a troubling chapter in its 149-year history with the much-delayed $15 billion buyout. Going private would give the company a chance to regain its footing, executives said.

Nikkei said Toshiba, which makes nuclear turbines and manufactures batteries and quantum computing technology, will investigate potential disconnects.

Conclusion: The shake-up at Toshiba is a poignant reminder of the pace of the corporate landscape and the need for companies to evolve to remain relevant and competitive. In the wake of these developments, industry insiders will be watching closely to see how Toshiba’s restructuring efforts unfold and what lessons can be learned for the broader dealer community.