Toshiba, one of the largest corporations on the planet, is very close to bankruptcy after announcing losses of 6.3 billion dollars due to its nuclear energy business in the US. The president of the board of directors has already resigned, but we are talking about over 200.000 employees who do not know to what extent their jobs are still secure.
It has been speculated for several months that Toshiba is going to announce losses of several billion dollars, but probably few expected such a large amount. Toshiba is one of the largest corporations in Japan, and going into insolvency could affect the Japanese economy to a good extent, considering the importance of the company for the country.
Everything has to do with a bad investment in Westinghouse and in companies that build nuclear reactors, and from here Toshiba lost the 6.3 billion dollars. The problem is so big that Toshiba is also considering the sale of the division that produces memories, from which even those from Apple buy components for most products.
We are talking about one of the biggest companies on the planet and about a huge loss, even for it, the shock being already felt on global stock markets. It is hard to say how Toshiba managed to save itself without selling its profitable divisions, but it is unlikely that this company will close down too soon, even if it will be sold piecemeal.
"The chaos at Toshiba, the Japanese corporate giant, deepened Tuesday, with its chairman resigning and the company saying it would book a $6.3 billion loss related to its US nuclear business. Toshiba said that it would take a $6.3 billion hit related to Westinghouse's acquisition in December of Stone & Webster, a nuclear construction business, from Chicago Bridge & Iron in December."
