TOKYO: Sharp Corp. plans to slash several thousand jobs through early retirement and take other measures in the face of massive after-tax consolidated losses for the April-June period this year, the first large-scale downsizing for the major electrical appliance manufacturer.
In April, Sharp forecast an after-tax consolidated loss of 30 billion yen for the year ending in March 2013. However, the firm will have to revise this projection downward because it will have to include funds for restructuring measures. The after-tax loss for the quarter is expected to be almost double the loss of 49.2 billion yen chalked up for the same period last year.
Sharp will seek applicants for early retirement both at home and abroad, including Europe, and will start negotiations with its labor unions over its downsizing plans shortly. Sharp has a worldwide workforce of about 56,000.
The decline in earnings has been caused by slumping liquid crystal display panel and solar panel businesses. LCD panel production at its flagship plant in Sakai, Osaka Prefecture, has been especially low.
Sharp also has agreed to pay about 15.8 billion yen to settle a lawsuit over alleged LCD price-rigging in the United States.
While Sharp is making efforts to rebuild its LCD panel business through a capital and business alliance with Taiwan’s Hon Hai Precision Industry Co., it also plans to expedite efforts to improve its balance sheet on its own.