Toshiba to Shut Down Business Phone Division

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 dealers 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 VIPedge 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.”{ad}

Toshiba America Information Systems couldn’t be reached for further comment.

Toshiba is struggling financially with its nuclear unit Westinghouse Electric, which may be heading toward bankruptcy. According to a report by Bloomberg, Toshiba has been battered to the point where a possible bankruptcy of the nuclear equipment business is being cheered by investors.

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