Toshiba Tec Expects Q2 Loss from ETRIA Layoff Plan

Toshiba Tec Expects Q2 Loss from ETRIA Layoff Plan

Toshiba Tec will book an extraordinary loss of about JPY 4.02 billion (USD 27.2 million) in the second quarter of the fiscal year ending March 2026, after agreeing to shoulder part of the costs tied to restructuring at a former subsidiary.

The loss relates to Toshiba Tec Information Systems (Shenzhen) (TESS), which was transferred in July 2024 to ETRIA, a joint venture between Toshiba Tec and Ricoh established to develop and manufacture multifunction printers. Under a contract signed later that year, Toshiba Tec committed to cover part of employee compensation expenses in the event of layoffs at TESS.

ETRIA has now decided to downsize TESS operations in fiscal 2026 as part of a consolidation of production sites. With the move triggering workforce reductions, Toshiba Tec said it could reasonably estimate its share of the costs, leading to the recognition of the one-off loss.

The company stressed the financial hit will be confined to the second quarter and will not affect subsequent periods. The expense has already been factored into Toshiba Tec’s full-year forecast, issued on August 6. Any changes to its outlook that require disclosure will be announced promptly.

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