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Scam-hit Toshiba warns of record $4.5 bn annual loss, to sack thousands

Scandal-hit conglomerate Toshiba warned Monday it expects to post a record annual loss of $4.5 billion and slash thousands of jobs, as shares in the firm plunged nearly 10 per cent. In a statement right after the close of trading, the MNC said it will cut 6,800 positions in its lifestyle business by introducing early retirement programmes and repositioning personnel.

As a result of such changes, Toshiba said it expects a 550 billion yen net loss for the year to March, exploding from a 37.8 billion yen loss in the previous 12 months. Shares in the company slumped 9.80 per cent to end at 254.8 yen on the Nikkei stock index. The broader market ended down 0.37 per cent.

Investors dumped the troubled company after the leading Nikkei business daily said edition that it was expected to report a net loss of 500 billion yen. The news is the latest blow to the 140-year-old firm after it was this year hit by revelations that executives systematically pressured underlings to inflate profits in a years-long scheme to hide poor results.

One of the most damaging accounting scandals to hit Japan in recent years, the case forced Toshiba's incumbent president and seven other top executives to resign.
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