Sharp to cut 2,000 jobs in Japan, 6 percent of local workforce

The company will make the cuts through a voluntary retirement program to be offered in November

Troubled Japanese LCD and TV panel maker Sharp said Tuesday it will cut 2,000 jobs domestically, or about 6 percent of its local workforce, as part of its ongoing restructuring efforts.

The company said the reduction in staff would come through a voluntary retirement program to be offered at Sharp and its main subsidiaries during the first two weeks in November, with those selected to officially retire in December.

Sharp, one of the world's largest makers of display panels used in flat-screen televisions, has been scrambling to shore up its finances as it faces huge operating losses. The company, which has been hurt by falling prices of LCD panels and TVs, said in March it had reached an agreement to sell a 10 percent stake in itself to Taiwan's Foxconn Technology Group.

But Sharp's stock fell sharply after the deal was announced, hitting less than half of its original value and putting the deal in doubt. Taiwanese authorities returned a regulatory filing, questioning the profitability of the investment for Foxconn, and the companies have said they are renegotiating.

Since then the Japanese media has been abuzz about the fate of Sharp, with the stock rebounding in recent days as the two sides say they are nearing a new deal. The Nikkei, Japan's largest business newspaper, has reported that Sharp is negotiating with its banks for additional operating loans and mulling selling off non-core businesses such as its copier division.

Sharp said the early retirement program will cost about ¥27 billion (US$340 million), with the expenses already included in its current forecast. The company said earlier this month that it expects a fiscal loss of ¥250 billion in the current period through March. The forecast was eight times worse than it made just three months earlier.

The Osaka-based electronics company said it had 30,800 employees in Japan as of the end of July, with another 32,600 abroad.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jay Alabaster

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?