Toshiba is to cut 900 jobs as part of an effort to restructure the PC side of its company to focus on selling PCs to businesses and withdrawing from parts of the consumer PC market.
The move is an attempt by Toshiba to transform its PC segment to support the overall business by securing consistent profits, the company said, claiming that shedding 900 jobs would save it ¥20bn a year.
Toshiba added it would "cultivate" more customers in the business market by expanding is product range with workstations and tablet PCs.
The company also plans to actively promote the Internet of Things (IoT) through the strengths of its PC technologies. Toshiba hopes to offer appealing IoT-ready products and services that connect various technologies in the business sector.
"Toshiba will accelerate building a business model that is not dependent on sales of PC hardware alone, but that incorporates development of core technologies to deliver enhanced services and solutions," the company said.
It added that such restructuring measures would increase product sales to the business market by 50 percent of its total sales by its 2016 fiscal year.
Describing the consumer PC market as "volatile" and over-dependent on sales scale and volume, Toshiba said it would be reducing the number of sales bases it has around the world from 32 to 13 this year, along with withdrawing from unprofitable markets.
The number of PC platforms Toshiba has will also be narrowed and it will scale back its PC head office by locating some of the department's functions beyond its Japan headquarters.
Resources previously allocated to the consumer market will be refocused on helping promote collaboration between the consumer and business market in developed countries. In effect, Toshiba is carrying out moves to make its PC business "asset-light".
Similar efficiency measures were introduced to Toshiba last year, which it reported had helped improve operating income in the first quarter of the current fiscal year – an increase of 14 percent over 2013, to ¥39.5bn.
V3 contacted Toshiba for more information on the restructure but the company has yet to respond.
Toshiba is not the only major technology company taking a business-orientated approach to desktop computer sales.
Michael Dell said in a recent keynote speech at the company's 2014 Solutions Summit that Dell is committed to the PC market with an emphasis on selling to enterprises.
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