Saturday , September 25 2021

Toshiba is selling assets and cutting 7,000 workers in an attempt to restore investor confidence



Japanese manufacturer Toshiba announced that the restructuring is being carried out to restore investor confidence. The company is beginning to sell troubled assets, cut jobs and redeem shares. The news raised the share price by 13%.

Correction of errors

The company announced that it would sell Its British nuclear subunit, and the Chinese ENN regulation company In the US natural gas business, part of the company's new five-year strategy, which includes a cut of 7,000 jobs.

The company's plan also includes the redemption of 40% of its shares. She Trying to restore investor confidence after the accounting scandal for 2015 revealed a number of irregularities in the conglomerate.

"The company could sell its inefficient businesses and cut jobs, so it was expected at some point, but investors are more likely to believe," says Hiroyuki Fukunaga, chief executive of Investrest.

"The announcement of the redemption of 40% of the shares is definitely good news," he adds. Toshiba has already announced that it will start a repurchase of 700 billion yen, but it did not mention when. The company also announced it had lowered its annual profit forecast to 60 billion yen, while previous expectations were 70 billion yen,

Plans and sales

The Japanese group is trying to sell assets that led to losses. The decision to sell Nugen will delay Britain's intention to build a new nuclear power plant. At present, the state-owned company, Korea Electric, is negotiating with Toshiba to acquire a stake in the company. The country's energy minister said on Thursday that he would coordinate his activities with the British government and follow the process.

Toshiba said it would sell its LNG production facility in the US to ENN Ecological as part of ENN. The company has been trying to sell this business for years after signing a 20-year LNG contract.

The Japanese company believes that asset sales and cuts, as well as other restructuring programs, will help its long-term profitability.

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