In Another Sign of PC Trouble, Toshiba Cuts 900 Jobs

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The PC industry has been under pressure for some time as the use of tablets and smartphones has completely replaced personal computers in many cases. Even laptop sales have fallen, leading to a new generation of device that is a hybrid laptop/tablet.

Toshiba, which is not among the largest PC companies in the world, admitted its own problems, and perhaps that of the industry, as it restructured its personal computer operation.

The company disclosed:

Toshiba Corporation (TOKYO: 6502) today announced that it will accelerate the restructuring of its PC business to focus on the profitable B2B field, and to control volatility in the B2C business by significant downsizing measures, including withdrawal from certain B2C markets. These moves are expected to support the business in securing consistent profit in the future.

And:

The company will also move ahead with actively promoting the IoT (Internet of Things). By fully utilizing its differentiating strengths in PC technologies, including BIOS, security, wireless and high density mounting, Toshiba will offer innovative and appealing IoT products and services in such areas as social infrastructure, the cloud, healthcare and home appliances. By deploying IoT which interconnects technologies in various business domains, Toshiba will accelerate building a business model that is not dependent on sales of PC hardware alone but that incorporates development of core technologies to deliver enhanced services and solutions.

These measures are expected to grow B2B sales to over 50% of all sales in FY2016.

Finally:

The restructuring announced today will reduce the PC business’s global workforce by about 900 employees within this fiscal year, more than 20% of the PC business headcount excluding manufacturing, and is expected to cut fixed costs by more than 20 billion yen against FY2013

Since the Internet of Things remains a poorly defined term, it is not clear what Toshiba plans.

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