Toshiba Updates: Reasons Behind Chairman Shigenori Shiga’s Resignation
After Toshiba's massive losses in its nuclear business, Chairman Shigenori Shiga opted to resign. Toshiba's Chairman filed a resignation after the Japanese conglomerate revealed the details about the multi-billion dollar loss of the company.
The embattled technology conglomerate aims to sell its lucrative computer-chip business to avoid failing at a higher rate. According to New York Times, the company is also planning to reduce more than $6 billion and withdrawn from the building nuclear power plants business.
Before the chairman's resignation, Toshiba delayed issuing its results, but later on reported a net loss of 390 billion yen ($3.4 billion) in the year to March 2017. The company is expecting to gain 712.5 billion yen ($6.3 billion, £5 billion) from its US nuclear business.
According to Toshiba, the net worth was negative with minus 191 billion yen ($1.7 billion) at the end of last year. Now, the company hopes that it can fix the numbers by the end of March through selling its flash-memory business and other assets.
President Satoshi Tsunakawa told the reporters that the company was looking for potential investors and partners who can acquire a state in Westinghouse. Also, he also said that Toshiba had viewed its movie into the nuclear sector.
According to Times Free Press, Toshiba's executives were also under intense scrutiny due to financial problems as well as the years of flawed business decisions that resulted in it. Furthermore, the company also examines whether the managers were acting appropriately every time they struck a deal in buying a company at the center of the problems.
The company's stock market value has decreased by half since its warning about the loss from Westinghouse in December. Toshiba's stock had also dropped about 10 percent in the midday Wednesday.
Toshiba said that it would stop bidding for contracts to building new power plants. Moreover, it also plans to refocus on servicing its existing plants and on reactor design. Toshiba was previously linked to a scandal involving its company officials who are doctoring the accounting books to meet the unrealistic profit targets.
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