Toshiba wants to reduce number of employees and sell assets to sanitize accounts – RTP

 The sector most affected by the reduction in employees is the “lifestyle”, the division that currently generates more losses to Toshiba, according to today’s edition of the Nikkei daily, citing sources close to the process.
 

 This sector employs more than 24,000 people in Japan and other countries, but it is not known how it would be distributed to staff reductions.
 

 Sales of this line of business fell 10% last year and the operating loss amounted to 109,700 million yen (€ 823 million).
 

 According to the Nikkei, the company also considers to dispose of its assets in Toshiba Tec, dedicated to solutions for businesses in the retail area, and also part of its diagnostic equipment drive imaging for hospitals, Toshiba Medical Systems.
 

 In the case of Toshiba Medical Systems, the company was thinking to sell part of its assets to an investment fund.
 

 Last week, the Securities and Exchange Surveillance Commission (SESC) of Japan has asked the Financial Services Agency (FSA) to fine Toshiba at 7,370 million yen (54 million euros) for the recent accounting scandal.
 

 If the FSA accept the recommendation, it would be the largest penalty ever imposed by the governing body Japan’s financial regulator.
 

 The amount would be much higher than the 1,600 million yen (11.9 million euros) with the SESC punished heavy machinery maker IHI in 2008 by inflating their accounts from the previous year.
 

 The Japanese financial regulator is also considering the possibility of a criminal charge against Toshiba, whose administration was dismissed after the scandal, according to sources quoted by EFE.
 

 Between 2007 and 2014, the company overestimated its revenues 224,800 million yen (1,680 million euros) and inflated its operating income 155 200 million yen (1,160 million euros), according to data provided by Toshiba itself.
 

 The SESC announcement was revealed on the same day that fifty small shareholders of Toshiba accused in court the previous administration for damages and losses after the price drop of the resulting shares of accounting fraud.
 

 Small shareholders call for a joint compensation of 300 million yen (2.24 million euros) to three former presidents and two former financial directors of Toshiba, a complaint raised at the Tokyo Tribunal.