OREANDA-NEWS. Toshiba Corporation (TOKYO: 6502) and its wholly owned subsidiary, Toshiba Lifestyle Products & Services Corporation, today announced that they will undertake a fundamental restructuring of Toshiba’s Visual Products business by ceasing TV development and sales operations in North America and licensing the North American TV business to Taiwan’s Compal Electronics, Inc. The new business structure will start to deliver products to the North American market in March 2015.

Toshiba also intends to transform its consumer TV business in regions other than Japan, replacing own development and sales with a brand licensing structure. The target date for completing the new scheme and concluding negotiations with candidates is April this year.

Toshiba has responded to shifts in the North American TV market with value-added products, including large screen and Smart TV with Cloud Portal, and also taken steps to cut costs and boost profitability by reducing platforms and reducing the employee headcount. However, as the growth of global market is slowing down, and continues to see harsh price competition, Toshiba has decided to build a new business structure.

Looking to the future, Toshiba will continue to refine optimal business structures for securing stable profit, and to develop new technologies and services across its diverse business fields.