Sharp ends early retirement plan as volunteers abound

The struggling Japanese manufacturer cut the program a week early as it quickly exceeded its goal of 2,000 early retirees

Japan's Sharp, struggling with deep losses and searching for a financial savior, has cut short an early retirement program after being flooded with volunteers.

The company said Tuesday that it ended the program after a week, having received 2,960 applicants, about 10 percent of its domestic workforce. The original plan was for the program to run for two weeks and target about 2,000.

The Osaka-based manufacturer, one of the world's largest makers of LCD panels for TVs and mobile displays, instituted the program as part of its restructuring efforts, which have also included broad salary cuts and mortgaging of key properties. The company forecasts a US$5.6 billion loss this fiscal year.

The job cuts are taking place as Sharp negotiates with major foreign IT companies such as Intel and Hon Hai Precision Industry, the parent company of contract manufacturer Foxconn Electronics. News reports have said it is nearing a deal for a US$500 million investment from Intel, while talks with Hon Hai have stalled after a previous agreement was scuttled earlier this year.

Sharp is slashing costs as it attempts to deal with a major cash crunch. The company has secured emergency loans from its banks, but financing costs have risen since its stock downgraded to junk status by ratings agencies.

While the company is ailing financially, it still possesses cutting edge manufacturing and display technology, as well as some of the largest LCD assembly lines in the world. It is attempting to shift production away from televisions to the booming market for smartphone and tablet displays.

The employees will officially leave the company Dec. 15. Sharp has also moved other employees between its Japan-based factories as it realigns production.

The early retirement plan, announced in August, applies to domestic workers and was to run from Nov. 1 to Nov. 14. The company ended the program Nov. 9.

Sharp said it had 30,800 employees in Japan as of the end of July, with another 32,600 outside Japan.

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.

Tags business issuessharpconsumer electronicsrestructuringlayoffsdisplaysComponents

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

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?