Toshiba to cut 3,900 temporary jobs

Japan's electronics giant Toshiba Corp today said it will cut an additional 3,900 temporary jobs by the end of fiscal 2009 through March 2010 after saying it anticipates a wider group net loss of 350 billion yen for just-ended fiscal 2008.

The latest projection compares with its January forecast of a net loss of 280 billion yen and a year earlier profit of 127.41 billion yen.

The company is not currently considering using the state-sponsored rehabilitation programme to restore its financial health, but added it does not rule out the possibility of applying for the scheme in the future, Toshiba's Corporate Executive Vice President Fumio Muraoka said.
 
The company attributed the expansion of its net loss to a write off of about 85 billion yen in deferred tax assets in anticipation of its largest ever loss and first red ink figure in seven years.

Toshiba will also continue to shorten working hours for employees mostly based in its semiconductor operations in the April-June period and reallocate about 3,000 full-time workers to profitable businesses. About 26,000 employees were under the work sharing program for fiscal 2008.
 
The firm said it will slash investment spending to 250 billion yen in fiscal 2009, down 42 % from the previous year as part of its effort to cut fixed costs by 300 billion yen to swing back into the black.