Toshiba to cut 7,000 jobs in 5 years

tokyo — The boss of struggling Toshiba said on Thursday 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 per cent — announcing the withdrawal from a US-based liquid natural gas business and the liquidation of NuGen, a nuclear subsidiary in Britain.

“After considering the additional costs entailed in continuing to operate NuGen, Toshiba recognises that the economically rational decision is to withdraw from the UK nuclear power plant construction project and has resolved to take steps to wind up NuGen,” the firm said in a statement.

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.