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Toshiba Tec Forecasts Loss for Second Quarter Due to ETRIA Layoffs

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Toshiba Tec of Japan today announced that it will report a loss of ¥4.02 billion ($27.28 million) for its second quarter, which consists of the three months that end on September 30, 2025.

The company explained that in 2024, it transferred the shares of Toshiba Tec Information Systems (TESS), a company subsidiary, to ETRIA. ETRIA is Toshiba Tec’s joint venture with Ricoh and is devoted to developing and manufacturing copier/MFPs and related products.

In September 2024, Toshiba Tec concluded a contract with ETRIA including provisions stipulating that in the event that ETRIA decides to downsize TESS’ businesses and layoff employees, Toshiba Tec will pay a a portion of the economic compensation payments that TESS is obligated to make to laid-off employees.

Since then, ETRIA has said it will reduce the scale of TESS’s businesses during fiscal-year 2026 as part of consolidation of its manufacturing sites in order to streamline production systems. Consequently, TESS notified its employees regarding the future policy of downsizing its businesses and its impact, including layoffs. This enabled Toshiba Tec to estimate the amount of employee layoff expenses it will pay in its second quarter. It doesn’t however expect to incur any expenses due to ETRIA’s restructuring in the upcoming third quarter.

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