updated 06:00 pm EDT, Mon September 30, 2013
Move intended to restore profitability to beleaguered department by 2014
Electronics manufacturer Toshiba is cutting its television division by 50 percent, and closing two facilities used for flat-panel manufacture. While not completely shutting down the department, the company expects that the changes will help the company see profitability in television sales in a tightening market before the end of 2014.
Additionally, the company is shifting focus to emerging markets in the Middle East and Africa where it notes that "growing demand is expected" rather than putting more effort into the highly-competitive European and North American markets.
Consolidating manufacturing efforts from three facilities to one and reducing product lines is intended to "improve profitability and strengthen foundations of the business." Responding to the 3,000-employee layoff report, the company claimed that "Toshiba aims to see profit in its visual products business in the second half of this fiscal year through continued review and reform of business processes and operations."