After incurring up to almost $6 billion in losses, Toshiba's Westinghouse unit is shaving down its nuclear ambitions. It will reportedly pull out of the nuclear construction business and will now focus only on nuclear reactor designs and finish construction of two US facilities.
Toshiba's nuclear manufacturing company, Westinghouse, is putting a lid on its nuclear construction ambitions in light of the $6 billion losses that it has incurred, reports CNBC and the Wall Street Journal. Westinghouse was purchased by the Japanese company for $5.4 billion.
Not only will Toshiba receive a change in its projects but also a change in leadership. As a result of the aforementioned exit, Shigenori Shiga, the chairman of Toshiba, and Danny Roderick, the former head of Westinghouse Electric, are expected to resign from their positions.
What is in Westinghouse's future now? The manufacturing company will solely focus on producing nuclear reactor designs. The ongoing construction of two nuclear facilities in the United States will also continue.
This loss has been gradual in the making with power plant construction delays adding to expenses. No official announcement has yet been made by Toshiba regarding this news but Wall Street Journal writes that it may be revealed this month, reports CNBC.
In addition, according to CNBC, Toshiba announced plans to put up a portion of its memory chip business up for sale in order to raise funds to pay for the costs of its nuclear construction projects.
In other news, another Japanese company is cutting back due to losses as well. Sony has recently written down a value of $1 billion in its movie business due to a market decline.
As online stream websites dominate the industry, DVD and Blu-ray discs are no longer selling as much as it used to. This has caused Sony to cut back in outlook earnings and reduce costs. Click here to read more about it.