Electronics is by far the fastest growing industry in the world. They would usually employ thousands of people to work for them in order to keep up with the production demand the market needs. Sony, Samsung, Asus are just some of the largest companies when it comes to electronics. However, for one electronics giant the situation is different. According to the Guardian, Toshiba, one of the biggest names in the electronics industry had to cut about 7,000 jobs because of an accounting scandal in early April.
It is said that the company's share price has dropped about 40% after the news broke out. The company is said to have a $1.3 billion accounting scandal after an overhaul was done in order to streamline the processes and system in order for the company to concentrate more on chips and nuclear energy. The company will sell its television manufacturing plant in Indonesia. This may lead to job cuts all over the PC to nuclear company is at an estimated number of over 10,000 which includes the previously announced job cuts and for some people seeking for early retirement.
Due to the streamlining process and costs, Toshiba is said to have an expected net loss of about 55 billion Yen in the financial year which is ending in March. In a statement it says, "By implementing this plan, we would like to regain the trust of all stakeholders including shareholders and transform ourselves into a robust business."
The company confirmed in August that they overstated their profits for the financial year 2008-2009 by about 155 billion yen. The report also revealed a 37.8 billion yen net loss for the last financial year. It included the costs and estimates in operation including the US power plant development, South Texas Project. According to an independent accounting investigation, the company suffered from dysfunction in governance and an environment that makes employees feel discouraged and start question their superiors. The company's president and chief executive, Hisao Tanaka quit last July as a result of the scandal.
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