Sharp Electronics may cut thousands more jobs even after it executes its present plan to cut five thousand jobs. Sharp hopes the cuts will improve its balance sheet.
Sharp is even considering the sale of it its building in Tokyo and land owned in western Japan. A report in the Mainichi Shimbun claims that the firms' main banks will provide the company a bridge loan of about $755 million U.S. to boost its cash flow.
However all the news was not gloom and doom as there were also reports that Hon Hai Precision of Taiwan planned to double it stake in Sharp. In March Hai Hon which makes iPhones and iPads in China bought a ten per cent interest in Sharp. Sharp makes Aquos televisions and office copiers as well as other products.
Sharp is attempting to re-organize its business. The company may spinoff a plant located in central Japan that makes LCD panels for smartphones and tablet computers including Apple iPhones and iPads. Given the success of these phones one would think that Sharp would keep the plant. However, it might fetch a good price and help Sharp's finances. Apparently Sharp may also drop out of the copier and air conditioner business.
Sharp based in the city of Osaka suffered a 40 year low in its stock price earlier this month before recovering slightly. The firm suffered a large quarterly loss and predicted more losses to come. The April-June loss for Sharp was 138.4 billion yen($1.8 billion U.S.) up from 49 billion yen a year ago. Sales during the quarter fell 28% from last year. For the business year that ends in March 2013 the firm predicted a huge loss of $3.2 billion U.S.. Other electronics companies such as Sony, RIM, and Nokia are also suffering from fierce competition. Sharp said that voluntary and mandatory requirements plus other arrangements will enable the company to meet the 5,000 job cut target.