Japan's Sharp Corp. reported its largest net loss for the year ending Mar. 31 due to a lack of demand for its television. This has led the last big maker of liquid crystal displays for TVs to undergo a restructuring process that could cut 5,000 jobs.
The same day the company announced nine executive personnel changes, it was reported that Sharp Corp. would consider cutting about 10 percent of its workforce around the world, which would be around 5,000 employees, a source told the Japan Times.
Sharp’s announcement of restructuring efforts comes as the maker of AQUOS TV filed a record net loss for the fiscal year ending Mar. 31. It also reported a second quarter net loss of $1.77 billion as well as a year-before loss of more than $626 million on $5.8 billion in sales. This figure is down 28.4 percent from one year ago.
The cut in its workforce will mostly be done through early retirements and job reductions through a plan to end its Sakai LCD Factory in the western region of Japan and transfer ownership to Hon Hai Precision Industry, also known around the world as Foxconn, who does business with Apple.
At first, Sharp considered slashing only 3,000 workers, but wants to enhance its restructuring process. For the first time in more than 60 years, the company is ordering early retirements to its staff.
“The company is pushing ahead with LCD business restructuring with the aim of enhancing cost competitiveness and improving profitability and working on mass production of high-performance LCD panels employing its proprietary IGZO technology," the company said in a statement.
“Meanwhile, the company is reorganizing its business sites in Europe to establish a regional headquarters, and making a shift to a regionally autonomous operation framework in order to realize business operation that addresses the needs of the local market to transfer authority and expedite decision making and to reinforce the business management structure.”