Toshiba to Reduce Workforce by 5,000. The Rising Trend of Layoffs in Japan. | Global News

Toshiba Corp. is reportedly set to cut 5,000 jobs in Japan, which amounts to about 10 per cent of its total workforce, as per a report by Nikkei. This move marks a significant shift from Japan’s historical reluctance towards layoffs, reflecting a growing acceptance due to ongoing labor shortages.

The initiative, if executed, would be one of the largest job reduction efforts in Japan this year. The Tokyo-based company aims to streamline its operations by downsizing noncore businesses, anticipating a one-time cost of approximately ¥100 billion (₹5,400 crore), according to the report.

Layoffs at Toshiba signify a departure from Japan’s traditional strong worker protection laws, in line with a trend among blue-chip companies facing a historic labor shortage. Factors such as union demands for pay raises, increased worker mobility, and a reliance on foreign workers contribute to this changing landscape.

Moreover, other prominent Japanese firms like Shiseido Co., Omron Corp., and Konica Minolta Inc. have also announced layoffs in recent months. Toshiba, a once major employer in Japan, is facing challenges as it looks to streamline operations and focus on infrastructure and digital technology, including nuclear turbines, batteries, and quantum computing technologies.

The company has a history of management missteps and scandals, such as a record penalty for financial statement falsification in 2015. Toshiba’s efforts to recover from losses, including selling its memory-chip business, have been complicated by issues in its nuclear business. Executives are pursuing a $15 billion buyout to take the company private, aiming to move past a troubled period in its 149-year history.