Toshiba to cut 4,000 jobs

Japan’s Toshiba said on Thursday it will cut up to 4,000 jobs domestically as the industrial conglomerate accelerates restructuring under new ownership.

Toshiba delisted in December due to a $13 billion takeover by a consortium led by private equity firm Japan Industrial Partners (JIP), capping a decade of scandal and upheaval.

The consortium’s efforts to engineer a turnaround at Toshiba are seen as a test for private equity in Japan, which used to be seen as “hagetaka” or vultures due to its rapacious reputation.

The restructuring amounts to up to 6% of Toshiba’s domestic workforce. The company also said it would relocate office functions from central Tokyo to Kawasaki, west of the capital, and target an operating profit margin of 10% in three years.

In Japan, which is known for its conservative business culture, PE firms are increasingly seen as an option for companies disposing of non-core assets or lacking succession candidates.

A wave of companies have announced job cuts in recent months including photocopier maker Konica Minolta (4902.T), opens new tab, cosmetics firm Shiseido and electronics firm Omron.