Toshiba is expected to post a massive $4.5 billion loss in 2015 as it continues to deal with the aftermath of a massive accounting scandal.
The loss is six times larger than the $734 million the company posted for the first half of the year and it’s significantly higher than analysts had expected.
Some of the losses are associated with Toshiba’s massive restructuring plan that includes cutting 6,800 jobs from its consumer electronics divisions by the end of March, and another 1,000 employees at its headquarters in Tokyo.
The company also plans to close its audio-visual business in all countries except Japan, and focus on licensing its brand in foreign markets.
Toshiba says it will lose $4.5 billion on restructuring costs and poor performance from the company’s energy and electronic devices divisions, along with income tax payments.
Toshiba shares fell by 10% Monday morning in anticipation of the company’s reorganization news.
Following its accounting scandal earlier in the year, shares at Toshiba fell by more than 50%. The company’s CEO Hisao Tanaka resigned in July.
Toshiba was founded in 1875, and made a name for itself introducing technological advancements in Japan from electric washing machines to refrigerators, and later, the world’s first color TV.
While Toshiba is still focused on many of its long-term products, today it also developed medical equipment and works in the nuclear power field.
Some analysts warn that other skeletons in the closet at Toshiba are still likely.