Toshiba to Spin Off 4 Operations
Toshiba said Monday it will spin off four key operations including its infrastructure systems to keep its financial standing from affecting its healthy businesses.
The company is planning to spin off its infrastructure systems, energy systems, information technology-related businesses and electronic device operations.
Roughly 24,000 of some 30,000 Toshiba employees are likely to be transferred to the newly established companies. Engineers in the research and development division and some administrative staff will remain employees of Toshiba.
Toshiba hopes to avoid losing large infrastructure building and energy system contracts by separating the key business divisions from the parent company.
The company is aiming to gain approval of the plan at a shareholders' meeting in late June and spin off three divisions in July and the energy system division in October.
Toshiba is in the midst of a severe financial crisis caused by losses at its U.S. nuclear unit Westinghouse Electric Co. that filed for Chapter 11 bankruptcy protection last month. Toshiba has already sold its medical business and spun off its chip operation.