TOKYO: Toshiba has sold one of its factories in Indonesia to Hong Kong-based company Skyworth for ¥ 3 billion (US$24 million) as part of its efforts to restructure its business after experiencing millions of dollars in losses.
Toshiba Corp. CEO and president Musashi Muromachi said the restructuring plan, which would last until March 2016, would involve 7,800 Toshiba employees in Japan and abroad and help the company save ¥550 billion. It is the biggest restructuring project in terms of value in Toshiba’s history.
“We project operating losses worth ¥340 billion as of March 2016. Net losses are estimated to reach ¥500 billion in the 2015 fiscal year,” said Mushashi at a press conference in Tokyo as quoted by Kontan.co.id on Monday evening.
In the previous Japanese fiscal year (April 1, 2014 to March 31, 2015), Toshiba reported a ¥37.8 billion net loss.
As part of the restructuring plan, Mushashi further said that Toshiba had decided to sell its factory in Indonesia – which produced television sets and washing machines – to Skyworth. The company was also seeking a buyer for its healthcare business.
Toshiba intends to sell its office in Ome, Japan, as well as restructure 1,000 employees in the future, after cutting 10,600 jobs this year.
