Toshiba cut costs in TVs, PCs due to weak demand

July 27
10:18 AM 2013

On Friday, Toshiba Corp of Japan said that it would cut a total of JPY10 billion equivalent to US$100 million in costs in its enterprise on PC and television. The corporation would cut the budget this year to March next year and then double the budget reduction in 2015. The reduction of budget would be done so that it could manage the constantly weak demand.

Toshiba said that it would reallocate its 400 employees from the domestic TV and PC enterprise to its unit that focuses on social infrastructure. For two years, its TV business suffered from weak global sales. Subsequently, its PC market was hurt by the increase of smartphones and tablets.

Toshiba further hoped to increase the number of televisions that it was able to sell to 40% of total revenue from just 30% in 2012. It would focus on the emerging economies while expanding its line of expensive LCD TVs. However, Toshiba did not disclose a plan regarding its PC business.  Whether it would venture on tablets or upgrade its computer system was still unknown.

Toshiba is the world's leading diversified maker, resolutions provider and marketer of advanced electronic merchandises and systems. Its annual sales used to be around JPY5.8 trillion or US$61 billion. It operated with a worldwide network of up to 590 consolidated corporations.

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