Sharp Will Cut 5000 Employees

Sharp Will Cut 5000 Employees

Sharp Will Cut 5000 Employees - Sharp, the largest manufacturer of electronic devices in Japan announced it will conduct layoffs (layoffs) to 5000 employees. The decision had to be done, considering the company is experiencing a loss in the fiscal first quarter (ended June 30, 2012) and lowers sales forecast for fiscal 2012.

Company established since 1912 in Tokyo, said, would reduce 5000 employees through mandatory retirement (mandatory retirement) and voluntary retirement to cut costs and return to profatibilitas.

Reported by Digitimes, Friday (03/08/2012), consolidated financial results for the fiscal first quarter showed net sales of JPY458.6 billion (USD5.87 billion), down 28.4 percent over the same period last year. While the operating loss was JPY94, 1 billion and a net loss of JPY138, 4 billion.

Estimates for the consolidated financial results for fiscal 2012 announced on 27 April 2012, has been revised. Sharp said the decline in equipment and Audio-Visual and Communication Equipment LCD, a major factor behind the downward revision in both net sales (revision of JPY 200 billion) and operating income (revision of JPY120 billion).

Express companies, revisions were made because of falling sales of LCD TVs is centered mainly in Japan and China. Moreover the deficit in the sale of small and medium size LCD, a result of delays in the launch and expansion of the customer to IGZO LCD and a decline in sales of electronic devices such as LED devices.

Sharp reportedly will work to achieve stable operation in the Sakai Plant and reduce inventory LCD panel, with the use of co-operation with the Hon Hai Group and the strengthening of external sales. The company also will promote sales and marketing activities of small and medium size LCD to develop new customers.