Latest in Accounting

Image credit:

Toshiba CEO quits after company lied about $1.2 billion profits

Matt Brian, @m4tt
07.21.15
139 Shares
Share
Tweet
Share

Sponsored Links

We knew it was coming, but Toshiba's CEO and president Hisao Tanaka is no longer at the company. As the electronics giant attempts to recover from the fallout following the disclosure that it declared $1.2 billion in false profit, Tanaka and two other executives have announced their resignations to take responsibility for the scandal. An independent investigation found that management lied about operating profits for over six years in a bid to meet internal targets, starting just after the financial crash seven years ago.

Toshiba says chairman Masashi Muromachi will fill the vacant chief executive role for the time being and help appoint a new management team. Including Tanaka, vice-chairman Norio Sasaki and former president Atsutoshi Nishida, eight high-level executives have now resigned after it was found they'd been cooking the books. Toshiba estimated a 55 billion yen ($442 million) writedown, but today's report revealed it was almost triple that figure. The company will now explore selling property and other assets to raise money to cover the blots on its balance sheet.

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
139 Shares
Share
Tweet
Share

Popular on Engadget

Google Stadia controller's wireless capability will be limited at launch

Google Stadia controller's wireless capability will be limited at launch

View
Master & Dynamic's MW07 Plus are much-improved true wireless earbuds

Master & Dynamic's MW07 Plus are much-improved true wireless earbuds

View
Master & Dynamic's MW07 Go is a $199 AirPod alternative

Master & Dynamic's MW07 Go is a $199 AirPod alternative

View
California's statewide earthquake alert system launches Thursday

California's statewide earthquake alert system launches Thursday

View
Skydio's station lets self-flying drones work around the clock

Skydio's station lets self-flying drones work around the clock

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr