Toshiba to cut 3,000 staff in ailing TV division

Reuters

(Corrects location of factory in third paragraph to Indonesiafrom the Philippines)

TOKYO, Sept 30 (Reuters) - Toshiba Corp said onMonday it would cut 50 percent of staff in its loss-making TVunit and cease production at two of its three overseas factoriesbefore the end of this fiscal year.

Toshiba said it would increase outsourced production to 70percent from 40 percent and reduce its global staff in thedivision by 3,000, with two-thirds of those positions overseas.In July it said it would move 400 staff, included in thatfigure, to other business units.

The company did not say which two of its three factories inChina, Indonesia and Poland it would close.

Toshiba's TV segment has been in the red for the past twoyears due to weak global sales, partly due to a slowdown inEurope and a fall in domestic demand after a short-lived boostfrom the switch to digital broadcasting.

In July the company announced plans to cut a combined 10billion yen ($101 million) in costs in its television and PCbusinesses this fiscal year, and then double that figure in thefollowing year to cope with weak demand.

The company said it expected the measures to help its TVdivision to swing into the black in the second half of thisfiscal year. (Reporting by Sophie Knight; Editing by Jeremy Laurence)

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