But analysts question whether streamlining can return the 140-year-old Japanese bulwark to dominance considering falling profit margins in the chip industry and a nuclear phase-out in developed countries since the 2011 Fukushima disaster.
The change in fortune at Toshiba, whose former executives have led Japan's business lobby and advised governments, comes as the company's shares languish at 40 percent below their value in April when management first disclosed accounting problems.
Toshiba later said it overstated profits beginning in the business year through March 2009. It has since begun restructuring after an investigation of its accounts revealed businesses in poor health.
On Monday, Toshiba said restructuring will push its loss for the year through March to about JPY 550 billion ($4.53 billion or roughly Rs. 30,039 crores), far worse than at the height of the global financial crisis.
The firm will cut 6,800 consumer electronics jobs taking its total this year beyond 10,000, including those previously announced and seeking voluntary early retirement. It will also sell its Indonesian TV assembly plant, effectively exiting overseas TV production.
"By implementing this plan, we would like to regain the trust of all stakeholders and transform ourselves into a robust business," Chief Executive Masashi Muromachi told a news conference.
Analysts doubt whether Toshiba can recover its prestige. The company launched the world's first mass-market laptop in 1985 but has seen its consumer electronics business dwindle in the face of price competition with Asian rivals.
Japanese consumer electronics makers have lost market share over the past decade to Apple Inc, Samsung Electronics Co Ltd and other more nimble and innovative rivals.
Domestic peers Sony Corp and NEC Corp in past years announced job cuts comparable to those at Toshiba, while Sharp Corp is currently seeking funds to rescue its ailing display business.
Downsizing in consumer electronics operations leaves semiconductors and nuclear power as Toshiba's main pillars.
"Toshiba said it will focus on chips but it will take time for profit to regrow," said analyst Hideki Yasuda of Ace Research Institute. Profitability at Toshiba's nuclear business including US subsidiary Westinghouse is also a concern, Yasuda said.
Toshiba last month said Westinghouse wrote down assets by $1.3 billion over the 2012 and 2013 business years. Analysts have also said Westinghouse faces increasing competition from Chinese and Russian builders of cheaper reactors.
© Thomson Reuters 2015