Toshiba’s Losses In This Business Were So Huge That Its Chairman Resigned

Toshiba Corp. is definitely not having a good week so far. The company has predicted such huge losses in its nuclear business that not only are they forced to sell their lucrative computer-chip business but chairman Shigenori Shiga has also resigned.

Toshiba has projected a $6.3 billion loss for its nuclear business related to the 2015 acquisition of CB&I Stone & Webster by its U.S. nuclear unit Westinghouse.

President Satoshi Tsunakawa said Toshiba is now looking for potential partners to acquire a stake in Westinghouse.
Shiga will step down from the board but will remain an executive.

The company’s nuclear business will be re-organized and will be directly under President Tsunakawa for stricter monitoring.

Toshiba has forecast a group net loss of $3.43 billion for the full year through March 31. This is compared to the instead of the nearly $1.3 billion profit it had anticipated earlier.