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Toshiba Corporation Telecommunication Systems Division Struggling Financially

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1. Create a baseline and inventory your current Toshiba infrastructure.

2. Review corporate and IT strategic plan.

3. Determine the level of risk.

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Toshiba is struggling financially and may be heading toward bankruptcy. According to a report by Bloomberg, Toshiba has been battered to the point where a possible bankruptcy of their equipment business is being offered to investors. Toshiba plans to shut down its business phone division as part of its continuing global restructuring.

In a letter this week, Brian Metherell, vice president and general manager of Toshiba America Information Systems’ (TAIS) Telecommunication Systems Division (TSD), notified Blink Communications of the pending closure.

Toshiba has “deemed it necessary to wind down our Telecommunication Systems Division (TSD) business starting immediately," he said. Toshiba Canada also will be announcing the wind-down of its telecommunications business, and TSD will no longer be selling in Mexico, he said.

TSD is a manufacturer of IP business telephone systems designed for small-to medium-size businesses and larger enterprises with multiple locations.


“Dealers can submit orders through May 22, 2017, subject to inventory availability and purchase order acceptance," Metherell said. “TSD will continue to support dealers in all warranty and maintenance obligations to customers. With respect to iPhone and Android VIPedge App customers, TSD will continue to support the services in accordance with contract terms. For customers who wish to transition away from VIPedge service, TSD will waive early termination charges."


Toshiba has been struggling with construction delays at Westinghouse location that could result in a write-down of $6.2 billion, although it hasn’t been able to get auditors to sign off on the final figures.


Blink Communications invests in itself to provide our clients the capability of delivering quality service for the long haul.


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