Electronics giant Toshiba expects to make a net loss of 350 billion yen ($3.5bn) for the financial year that ended last month.
It had previously forecast a 280bn yen loss, but has revised that figure.
In January it reported weak demand due to the economic downturn and a stronger yen, which hit Japan's exports.
It plans to cut capital spending by 42 per cent this fiscal year from a year earlier to 250 billion yen ($2.5 billion) this year.
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The company will also slash research expenditures 18 per cent to 320 billion yen, it said today in a statement.
Toshiba manufactures NAND flash memory chips used in iPods and other digital music players, as well as making electronic goods.
The company is cutting 4,500 jobs in a bid to cut costs.