Toshiba has reported a record annual loss this past week which is putting them in a position to cut thousands of jobs. On Friday, Toshiba reported a 343.6 billion yen net loss for the year that was ended in March. The year before, Toshiba had reported a 127.4 billion yen profit. This was Toshiba’s biggest loss ever and it is the first time they had a loss in seven years.
Toshiba, the 5th largest PC manufacturing company, has seen their annual sales drop 13%. This converts to about 6.65 trillion yen. The reason for this sales drop is because of their business becoming weaker in areas such as digital equipment and consumer electronics. The company has blamed the shrinkage in the overall market caused by the global recession.
The company believes they will have losses for one more year and then will see sales climb again as the mobile phone industry is strengthening. The company will be slashing costs in areas such as R&D, personnel costs, and other investments.