Toshiba to cut costs in TVs, PCs by $300 million over next 2 years

Reuters News
Posted: Jul 26, 2013 2:29 AM
Toshiba to cut costs in TVs, PCs by $300 million over next 2 years

TOKYO (Reuters) - Japan's Toshiba Corp said on Friday it aims to cut a combined 10 billion yen ($100 million) in costs in its television and PC businesses in the year to March 2014 and double that figure in the following year to cope with persistently weak demand.

Toshiba said it will shift 400 staff from its domestic TV and PC businesses to its social infrastructure arm and other segments this fiscal year, after breaking up its Digital Products company into three divisions.

The company's TV segment has been in the red for the past two years due to weak global sales, partly reflecting a slowdown in Europe, and a drop in domestic demand following a short-lived boost from a switch to digital broadcasting. The PC market has also been hit by the rise of smartphones and tablets.

Toshiba said it would aim to increase TV sales in emerging economies to 40 percent of total revenue, from 30 percent in fiscal 2012, while expanding its line of high-end LCD TVs and focusing on its B2B business.

The company's share price closed down 3.7 percent on Friday at 463 yen, in line with a 3 percent drop in Tokyo's benchmark Nikkei share index.

(Reporting by Sophie Knight; Editing by Edmund Klamann)