Japan’s Toshiba has said it will cut nearly 7,000 consumer electronics jobs after a $1.3bn accounting scandal, in an overhaul that will streamline the sprawling conglomerate into a company focused on chips and nuclear energy.

Toshiba also said it would sell its television manufacturing plant in Indonesia, and that eventual job cuts spanning the entire PC-to-nuclear company could be over 10,000, including previously announced cuts and those seeking voluntary early retirement.

Due to restructuring costs, which include the sale of its Indonesian TV plant, Toshiba said it expected a net loss of about 550bn yen (£3bn) in this financial year ending in March.

“By implementing this plan, we would like to regain the trust of all stakeholders including shareholders and transform ourselves into a robust business,” it said in a statement.

Toshiba confirmed in August that it overstated profits going back to the 2008-09 financial year by 155bn yen. It also reported a 37.8bn yen net loss for the last financial year to reflect more costs and conservative estimates on operations, including the South Texas Project, a US power plant development.

An independent accounting investigation said in July that the company suffered from dysfunction in governance and a culture of discouraging employees from questioning their superiors. Hisao Tanaka, the company’s president and chief executive, quit in July as a result of the scandal.

Toshiba’s stock has fallen about 40% since news of its accounting problems began to emerge in early April. The scandal and subsequent earnings restatements highlighted weaknesses in a range of Toshiba’s businesses.

Analysts have said restructuring was long overdue. The company launched the world’s first mass-market laptop in 1985 but has seen its consumer electronics business dwindle amid price competition with Asian rivals.