After a projected $4.13 billion net loss this 2015, what's next for Toshiba?

Toshiba Corp., a Japanese company with businesses encompassing diverse aspects like energy and infrastructure, community solutions, healthcare systems and services, electronic devices and components, and lifestyle products and services, per Toshiba's website, expects a big loss equating to more than 500 billion yen on restructuring costs, Reuters notes.

A person familiar with the situation also confirmed the same amount to The Wall Street Journal, which the company will likely post as its loss for the fiscal year.

The heavy restructuring costs are related to an accounting scandal, layoffs and sales of business units, Bloomberg Business informed. A separate article from Bloomberg Business noted in July that an investigation revealed that top executives of Toshiba "set unrealistic profit targets that systematically led to flawed accounting." These irregularities were said to be "skillfully" hidden from outside observers.

Former presidents Hisao Tanaka, Norio Sasaki and Atsutoshi Nishida resigned following the conducted investigations.

Toshiba apologized to those greatly affected by their institution through their website. The company is also optimistic that their new management will make things better for everyone concerned.

"Toshiba Corporation expresses sincere apologies to our shareholders, customers, business partnersand all other stakeholders for any concern or inconvenience caused by issuesrelating to the appropriateness of its accounting treatments," Toshiba wrote in a statement

With the new management team and governance structure, Toshiba, as a whole, will unite to make every effort to regain the trust of shareholders, investors, all other stakeholders and members of the public, and asks for your understanding and ongoing support," the statement reads.

Will Toshiba expect a brighter future ahead?

The company is now currently managed by president Masashi Muromachi to work on a stronger future for the company. To get rid of the shadows of their past executives, the company is aiming to bring more outside directors and has decided to cut pay for its higher officers.

Takeo Miyamoto, an analyst at Mitsubishi UFJ Morgan Stanley Securities Co., has predicted something that may dishearten the Toshiba executives even more, Bloomberg informed.

"Even if they book a massive loss, that still may not be the end of bad news for the company," Miyamoto said.

The analyst noted that the corporation may most likely incur further losses and worse market conditions, especially with the declining demand for smartphones. This will have an impact on the flash memory industry, including Toshiba's own investments.

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