Toshiba admitted on Monday that it had overstated its profits by nearly $2 billion over the past 7 years, the Wall Street Journal reports.
The company announced in April that it had been facing accounting problems, but the extent was not understood until now.
An independent panel said managers at the company set aggressive profit targets that subordinates could not meet without inflating divisional results, the Journal said.
Toshiba has responded to this scandal by changing up its management. Masashi Muromachi, who took over as president in July, said in a press conference:
The company may face some roadblocks in its revival. Its home-electronics/appliances division has not been profitable, and its memory-chip division, which was the company’s most reliable earner until now, is seeing a decreased demand from Chinese electronics companies.
Toshiba’s shares fell dramatically after the company’s announcement in April.
- These Charts Show COVID-19 Is Still the Pandemic of the Unvaccinated
- Reddit Allows Hate Speech to Flourish in Its Global Forums, Moderators Say
- What It Takes to Get Support for a Black Boy With Special Needs
- Shonda Rhimes Already Knows What You're Going to Watch Next
- How Harry Reid Paved the Way for Democrats to Kill the Filibuster
- President Biden's Speech in Atlanta Was Designed to Appeal to Black Voters—But Not Everything About It Succeeded
- China Is Finding Fewer Reliable Sources of Coal. That Could Be Bad News for the Climate