Toshiba to reduce workforce by 3,700
Toshiba is set to structurally reform its Visual Product business segment by reducing its employee headcount from 4,800 to 1,100 by the end of fiscal 2016. This restructuring is expected to cost $0.33 billion. Toshiba (TOSYY) stated that it would reduce fixed costs by $0.15 billion in fiscal 2016 compared to fiscal 2015. It would further reduce global sales to 600,000 units a year to make this segment profitable.
In order to focus on the domestic market, Toshiba plans to manufacture small television sets with high image quality, utilizing its current production lines. It has shifted its brand licensing to Compal Electronics, a Taiwanese firm in North America and Europe.
Structural reform of the Home Appliance business segment
Toshiba is set to structurally reform its Home Appliances business segment by reducing the employee headcount from 14,600 to 12,800 at the end of fiscal 2016. This restructuring is expected to cost $0.03 billion. Toshiba (TOSYY) stated that it would reduce fixed costs by $0.04 billion in fiscal 2016 compared to fiscal 2015 by consolidating domestic bases and increasing operational efficiencies.
Toshiba’s main competitors in the semiconductor segment include Micron Technology (MU), Intel (INTC), and Samsung (SSNLF). In order to get broad-based exposure to Micron Technology, you can invest in the iShares PHLX Semiconductor ETF (SOXX) and the VanEck Vectors Semiconductor ETF (SMH). Micron Technology constitutes 3.6% of SOXX and 3.4% of SMH.