Toshiba  Corporation
Westinghouse eyes India reactor deal in time for possible Modi US visit. Picture: A building withe Toshiba Corporation written on top of it. [Representational Image]Reuters

Toshiba Corp is mulling cutting 7,000 jobs as part of its plan to restructure the scandal-hit company.

Major jobs cuts are expected in the lifestyle segment like television, personal computer (PC) and white goods businesses, which are not profit-making, reported the Nikkei Daily newspaper.

The company is also expected to impose early retirement and transfers on employees, sources told Japan Times.

Earlier this year, the company had been hit by a scandal after revelations about its inflated profits for the last seven years had been reported.

The Ome factory in west Tokyo, which makes televisions and PCs, is up for major downsizing in operations. The company is considering stopping the manufacturing of televisions completely, Nikkei reported.

The lifestyle segment employed 24,000 foreign and domestic employees on 31 March, 2015. The company has lost ¥109.7 billion in operations, Nikkei reported.

Toshiba will also scale back its image sensor and white light-emitting diode business, which would lead to job loss and transfers of up to 2,300 employees.

The parent company will be selling its major stakes in Toshiba TEC Corp, the office equipment subsidiary, to streamline its focus towards core operations like nuclear power and semiconductors, sources told Japan Times. Toshiba TEC suffered a net loss of ¥7.4 billion during the first half of 2015.

Ernst and Young's Japanese subsidiary, which audited Toshiba, will also be facing punishment from Japanese regulator Certified Public Accountants and Auditing Oversight Board, a regulatory panel within Japan's Financial Services Agency (FSA), reported Reuters.

Toshiba had shown inflated earnings up to $1.3 billion since 2008.

Hisao Tanaka, the chief executive of Toshiba, and other senior officials had resigned in July.

Toshiba President Masashi Muromachi said the restructuring would go on "without limits" as the firm has to downscale its profits by ¥224.8 billion to level out the inflated earnings posted from 2008 to 2014 on pretax basis, reported Japan Times.