As the company faces a record loss and more money to help fund struggling business units, Toshiba announced its current CEO will resign in three months time and be replaced by a current Toshiba executive.
The Japanese company announced Norio Sasaki, 59, who now leads the infrastructure systems group, is slated to be the next president and CEO of Toshiba. Sasaki is best known for leading Toshiba's $5.4 billion acquisition of the Westinghouse nuclear power plant business, and will look to use that business savvy to help Toshiba immediately.
"For a moment, I was hesitant," Sasaki said during a crowded press conference in Tokyo. "There's a huge amount of pressure involved in taking over during this very tough period."
Toshiba is facing major financial issues while it still considers spinning off several of its business units, though without very much luck so far. The company announced it must cut costs by 15 percent, while also slashing 4,500 temporary worker jobs as it looks to take manufacturing overseas.
It should be intersting to see how the new CEO deals with these issues, and how much slack he will be given by the board of directors and investors.
An executive reshuffling often is a sign of turbulent times, as Sony, Hitachi, Toyota and Honda also have been forced to make executive changes as the Japanese economy continues to struggle. Each Japanese company has to deal with a stronger yen at a time when demand for consumer electronics is slumping.
