Toshiba to cut 7,000 jobs as it predicts record $4.5bn loss

The restructuring will trigger the record net loss for the fiscal year to the end of March

Toshiba shares tumbled nearly 10% on Thursday after Bloomberg News reported that Toshiba was under investigation by US authorities

Scandal-plagued Japan’s Toshiba has said it will cut 7,000 consumer electronics jobs and make a record loss of $4.53 billion (£3 billion) after a $1.3 billion accounting scandal.

The company, whose activities include everything from laptops to nuclear power, said it will streamline the company to focus on chips and nuclear energy.

It television manufacturing plant in Indonedia will also be sold as part of the cuts, taking the number of potential job losses to over 10,000.

That restructuring will trigger the record net loss for the fiscal year to the end of March, the company added.

The Japanese firm admitted earlier this year that it had overstating its accounts since as far back as its 2008 financial year.

The revelations led to the resignation of Hisao Tanaka, president of the conglomerate, and around half of the 16-strong board.

"By implementing this plan, we would like to regain the trust of all stakeholders including shareholders and transform ourselves into a robust business," it said in a statement.

Toshiba shares, which have lost about 40 per cent of their value since news of the accounting problems began to surface in early April, were last down almost 10 per cent.