Japan’s Toshiba plans to cut costs
The recession hit economy of the country has taken its toll on many of the giants from all the sectors. The companies have been looking at chalking out effective cost cutting techniques and methods, including handing pink slips, cutting production, shutting units and reducing incentives of the top officers. The latest to join the giants is Toshiba.
Japanese electronics giant Toshiba is planning to reduce the company’s fixed costs by 10 per cent more than it previously announced, a newspaper reported on Sunday.
The electronics giant will cut $3.5 billion (330 billion yen), ideally allowing itself to secure an operating profit of 100 billion yen in the 2009 financial year, the Nikkei newspaper reported.
Toshiba posted an operating loss of 250 billion yen in financial year 2008.
Another electronics company, Sony has announced on Thursday that the company would cut its number of suppliers by more than half in an attempt to reduce the procurement costs by $5.3 billion a year. On the other hand, Hitachi is also planning to cut such expenses by 200 billion yen, the newspaper reported.
