TOSE Co. Ltd. announced its plans to shutter its Philippine subsidiary, TOSE PHILIPPINES, along with its Sapporo Development Center as part of a strategic restructuring. The company aims to enhance corporate value by focusing resources on more efficient and higher-value operations. The closures come amid challenges in improving development efficiency and keeping pace with industry innovations.
The closures are expected to result in a combined extraordinary loss of ¥121 million (approximately $828,000). The company also indicated it is reviewing its consolidated business forecast for the fiscal year ending August 2024 and will provide further updates as necessary.
TOSE PHILIPPINES had struggled to recover from operational disruptions caused by the shift to remote work during the COVID-19 pandemic. Despite efforts to improve its technological capabilities, the subsidiary continued to face losses due to rising costs and stagnant efficiency. The company has therefore decided to dissolve and liquidate the subsidiary, resulting in an extraordinary loss of ¥105 million (approximately $720,000).
Meanwhile, the Sapporo Development Center failed to meet its recruitment and efficiency goals due to intensified competition for talent. Its operations will be transferred to other centers, resulting in an additional ¥16 million (approximately $109,000) extraordinary loss.
