Electronics giant Toshiba has announced that it expects to post deep losses for its current financial year, while reports suggest the company is about to cut as many as 3,900 employees.
The company said that it would be revising its annual forecast to post a loss of roughly 350bn Yen (£2.4bn). Among the factors cited for the revision was a change in tax charges that the company estimated at 85bn Yen (£600m).
The bad news for Toshiba was first forecast in January when the company posted a loss of 158bn Yen (£1.23bn) and forecast a yearly loss of 280bn Yen (£2.18bn).
Despite the overall worsening of the financial outlook, Toshiba noted that its television and memory device divisions were performing better than the company first forecast in January.
The good news, however, may be very short lived for Toshiba, According to reports from both the New York Times and Wall Street Journal, the company is set to shed some 3,900 jobs.
The cuts are reportedly going to affect temporary employees in Japan.
Toshiba's are the latest in a massive wave of cuts that have been hitting the IT industry over the past six months. Company's ranging from Yahoo to IBM, Microsoft and AMD have all had to cut jobs amid the ongoing economic crisis.
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