Toshiba slashes 7,000 jobs, pulls out of nuke plant

Daily Sabah (Turkey) - - Business -

THE BOSS of strug­gling Toshiba said yes­ter­day he would cut 7,000 jobs over the next five years as the Ja­panese en­gi­neer­ing firm pulled out of for­eign in­vest­ments and down­graded its an­nual profit fore­casts. Toshiba also ex­pects to scrap or con­sol­i­date some fac­to­ries and re­duce its sub­sidiaries by 25 per­cent - an­nounc­ing the with­drawal from a U.S.based liq­uid nat­u­ral gas busi­ness and the liq­ui­da­tion of NuGen, a nu­clear sub­sidiary in Bri­tain. A joint ven­ture be­tween Toshiba and France’s Engie, the NuGen project in Cum­bria in north­west Eng­land was to com­prise three re­ac­tors and was due to start pro­duc­ing en­ergy from 2025.

CEO Nobuaki Ku­ru­matani told re­porters in Tokyo the de­ci­sion was reached af­ter “sin­cere dis­cus­sions” with the Bri­tish gov­ern­ment. He added that the firm ex­pected to slash 7,000 jobs over the next five years, many com­ing from early or planned re­tire­ment. The for­mer Ja­panese be­he­moth is go­ing through a sweep­ing re­form ef­fort to re­vive it­self fol­low­ing its dis­as­trous ac­qui­si­tion of U.S. nu­clear en­ergy firm West­ing­house, which racked up bil­lions of dol­lars in losses be­fore be­ing placed un­der bank­ruptcy pro­tec­tion. For the year to March 2019, the firm said it ex­pected a net profit of 920 bil­lion yen ($8.1 bil­lion), down from an ear­lier pro­jec­tion of 1,070 bil­lion yen. An­nual op­er­at­ing profit out­look is now 60 bil­lion yen, down from a pre­vi­ous 70 bil­lion yen fore­cast, while the sales es­ti­mates were kept at 3,600 bil­lion yen.

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