Toshiba said on Friday it aims to cut a combined 10 billion yen ($100 million)
in costs in its television and PC businesses in the year to March 2014 and
double that figure in the following year to cope with weak demand.
Last year, Toshiba transferred the LCD TV design and development function from
Fukaya Complex in Saitama prefecture to Ome Complex in western Tokyo, Toshiba's
development hub for PC and tablets. Concurrently, Toshiba concentrated technical
service operations for LCD TVs in Fukaya Complex to a group subsidiary.
Despite these efforts, Toshiba has recorded losses in the LCD TV business for 2
consecutive years. In addition, the PC market is expected to see lower demand,
reflecting the growing popularity of smartphones and tablets.
Toshiba plans to increase sales and profit by accelerating profit-focused
resource allocation and establishing a business strategy to reduce fixed costs,
improve profitability and strengthen the business foundations. It will also seek
to promote sales in emerging markets, focusing on B2B business and developing
high value-added products.
The Japanese company plans to reduce fixed costs in the LCD TV and PC businesses
by approximately 10 billion yen in FY 2013 and approximately 20 billion yen in
FY 2014, against FY 2012.
In sales, Toshiba will accelerate resource allocation and hone its market focus,
including its business in emerging markets. The company expects to generate 30%
of its sales in emerging markets in FY2012 and to boost this figure to
approximately 40% in FY2013
In terms of products, Toshiba will expand its line-up of high value-added
products in the global market, including large screen 4K LCD TVs, promote the
provision of cloud services, and continue to reinforce development of local-fit
products in emerging economies. Toshiba will also strengthen its B2B business,
including digital signage and LCD TVs for specific sectors.
Toshiba will also draw on its know-how to diffuse its technologies into new
business areas, including bringing glasses-free 3D TV technology into medical
Toshiba also plans to launch a new line-up enterprise PC products that offer
improved security and mobility, and that provide solutions, including energy
savings and lower cost asset management, through its client manager utility. The
company will also promote business in the education and healthcare markets, in
both hardware and software.
In the B2C market, Toshiba will launch strategic high value-added products, such
as an Ultrabook with an advanced handwriting function, and expand direct sales
through its online shopping site, Toshiba Direct.
Toshiba will also transfer approx. 400 employees, 20% of the total staff working
in the LCD TV and PC businesses in Japan, from the design, sales and
administrative departments of the LCD TV and PC businesses in Japan to social
infrastructure businesses within this fiscal year.
Finally, company will reform the organization of its in-house company, the
Digital Products and Services Company on August 1, 2013.