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Toshiba to Lose 18,000 Jobs

Japanese electronics giant Toshiba says it will cut its workforce by about 10 percent. The move is another blow to Japan's technology sector, hard hit by the global economic slowdown.

Japan's largest computer chipmaker, Toshiba, said Monday it will slash about 18,000 jobs to cope with a sharp drop in worldwide demand for electronics.

The announcement is the latest in a string of job cuts unveiled by Japanese electronics makers, including Fujitsu and NEC.

Stock market analyst Alan Bell says these firms must eliminate jobs to compete. "These companies have particularly difficult problems to deal with. There is only one way of dealing with being overweight, and that is to slim down," Mr. Bell said.

Most of Toshiba's layoffs will occur in Japan. The company has a reputation for lifetime employment and the layoffs surprised many of its employees.