Japan's biggest chipmaker, Toshiba Corp, unveiled a sweeping restructuring today that will cut 19,000 jobs over the next three years and consolidate its sprawling industrial empire at home.
Some 17,000 of those job cuts will hit Toshiba employees in Japan.
The total reduction, which represents 10 per cent of Toshiba's global workforce, is scheduled to be completed by March 2004. The company will also consolidate or close 30 per cent of its 21 domestic manufacturing facilities over the same period.
The dramatic economic slowdown that began in the US at the end of 2000 is becoming a global phenomenon that has undermined worldwide demand for information technology, Toshiba said in a statement.
Toshiba's revised forecasts reflect this, particularly lower demand for electronic components for digital devices.
Toshiba warned it would see a net loss of 115 billion yen ($957.4 million) for the full year through next March, down from its original forecast of a net profit of 60 billion yen, and said it would not pay a dividend for the half-year to end-September.
The restructuring comes as Japanese electronics makers slog through the worst-ever information-technology recession and after rivals like NEC Corp and Fujitsu Ltd all announced steep staff reductions and stern profit warnings.