Japan - Toshiba plans to cut 3,900 more jobs due to the company's forecast of a record annual loss.

As the recession is causing a greater slump in exports, the electronics and engineering company has estimated the highest net loss of 350 billion yen (SG$5.3 billion) in the financial year that ended last month. The company said that while the price of flash memory chips used in portable music players and mobile telephones was improving because production had been cut, demand still remained weak.

According to Channel NewsAsia, Toshiba plans to cut capital investment by 42% this fiscal year. It expects a smaller operating loss of 250 billion yen (SG$3.8 billion).

"While it's not impossible that the overall earnings may return to the black in the fiscal year 2009, its semiconductor business remains under severe strain and is unlikely to improve for a while," says Mizuho Investors Securities analyst Yuichi Ishida.

Toshiba previously laid off 4,500 temporary workers from the last financial year to March.