Things are not looking good for Toshiba’s TV division, and as a consequence Toshiba is forced to lay off half of the employees in the TV division. Toshiba will also close two of the three TV factories outside Japan.
Toshiba closes two TV plants
Toshiba is forced to fire 3000 people in its TV division, of which 400 will be moved to other business units within Toshiba.
Toshiba currently has three TV factories outside Japan that are assembling TVs to reduce costs and toll expenses in local regions. Two of the TV factories will cease production before the end of this fiscal year. Toshiba’s factories are located in China, Indonesia and Poland, but Toshiba does not say which two of the three will close. If the factory in Poland ceases production it will likely also affect Toshiba’s plans for Europe.
Toshiba has announced new Ultra HD TVs, but it is unclear if they will make it to all regions after this announcement
Toshiba is one of the traditional Japanese TV brands that have seen its sales plummet after Samsung and LG rose to the top, but they have also felt the pressure from Chinese TV brands in recent years. Luck has not always been on Toshiba‘s side either. Only days after the catastrophic tsunami that hit China, FlatpanelsHD was in Rome, where executives from Toshiba were clearly deeply touched, professionally and personally, by the tragedy.
Toshiba will not exit the TV market, but as part of the new initiatives 70 percent of TV production will be outsourced to other manufacturers. Toshiba says that they hope to turn the TV division profitable in the second half of this fiscal year. They will also cut PC production.