Toshiba Corp. (TOSYY) surged Thursday, Nov. 8, on news that the Japanese manufacturing conglomerate would cut 7,000 jobs as part of a larger corporate restructuring initiative.
American depositary receipts of Toshiba rose 10% to $16.35.
Reuters and CNN reported that the job cuts were designed to help the company reorganize and shift focus to other businesses it believes can bring value. Toshiba, now an owner of many industrial-related subsidiaries, is reorganizing its energy businesses in both the U.S. and the U.K.
Toshiba also plans to repurchase 40% of its own shares beginning this week, the news outlets reported.
"Industries like tech and energy are experiencing disruptions, causing companies to develop new technologies to meet consumer and investor demand," said Andrew Challenger, vice president of global outplacement and executive coaching firm Challenger, Gray & Christmas Inc., which commented on the Toshiba news Thursday.