Global Layoffs: The wave reached Japan, this giant company is doing the biggest layoffs in a decade

The wave of layoffs in renowned companies across the world is showing no sign of stopping. After the layoffs done this year by many big companies in America, now the employees in Japan are also being affected. Now a new name has been added to the list of companies doing layoffs – Japanese company Toshiba.

So many employees will be affected

According to a report by Nikkei Asia, Toshiba will lay off about 5 thousand employees. About to be thrown out of the job. It has been told in the report that this retrenchment plan of the company is going to affect the employees of the domestic market i.e. Japan. The number of employees the company has planned to lay off is equal to about 7 percent of its total workforce in Japan.

There were major layoffs in 2015 as well

This Toshiba This is the biggest layoff in almost a decade. Earlier, Toshiba had laid off thousands of employees in the year 2015, when a case of accounting irregularities came to light in the company. At that time the company was embroiled in controversies due to accounting irregularities. After that, he had shown the way out to the employees on a large scale.

Such a huge expense will come from retrenchment

In this time's retrenchment plan, the burden is going to fall on those employees who Engaged in back-office work at the company's headquarters. Employees are going to get the option of voluntary retirement from the company. According to the report, this retrenchment plan is going to cost the company about 100 billion yen ($646 million) on special retirement benefits and outplacement services.

Debt pressure on Toshiba

Japanese company Toshiba is currently facing financial challenges. In December last year, the company was delisted from the Japanese stock exchange. In the delisting, Japan Industrial Partners Consortium had spent 2.4 trillion yen to buy back shares from shareholders. Out of that, 1.4 trillion yen was arranged by taking loans from banks, for which Toshiba's assets have been mortgaged with the banks.

Google's news came a day ago

A day before this, information about layoffs in tech giant Google had come to light. This is Google's second layoff in 2024. Before that, in the last three and a half months till now in 2024, big companies like Apple, Facebook and Amazon have also done layoffs. Companies all over the world are resorting to restructuring to reduce operating costs and are focusing on layoffs.

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