Feeds

Sharp to cull 5,000 as losses exceed £1 BILLION

Electronics giant on the ropes

Internet Security Threat Report 2014

Japanese electronics giant Sharp has become the latest tech firm to announce swingeing job cuts, with 5,000 employees set to be culled in a bid to slash costs after it revealed losses in the last quarter of £1.1bn.

Sharp hasn’t been forced to make any redundancies in over 60 years but has been hemorrhaging money thanks to a slowdown in demand from China and the EU, as well as its domestic market.

The firm announced a net loss for the period April-June of 138.4 billion yen (£1.1bn), up from 49.3bn yen last year. Its annual forecast for the year ending 31 March 2013 is not much better, with net losses predicted to be a massive 250bn yen (£2.1bn), up from a previous forecast of 30bn yen.

Sales of LCDs, TVs, solar panels and mobile phones have all been affected by sluggish demand and “an ongoing price drop for products and devices”.

Sharp could also probably do without the hefty $388m settlement it and several other electronics firms agreed to pay to end legal action alleging involvement in a global LCD price fixing cartel.

There are no details as to where the axe will fall but 5,000 jobs amounts to just under ten per cent of Sharp’s entire workforce, so no region would appear safe.

The firm’s grand plan for digging itself out of this rather massive hole includes outsourcing production of more display products to Foxconn parent company Hon Hai, as previously announced.

It’s also looking to give its regional headquarters more autonomy, place more emphasis on providing services and generate new demand for “one-of-a-kind products” such as the IGZO LCD.

The company explained its future plans by stating:

As for the future outlook, we expect the business environment to remain unpredictable, with increased downside risks, including the possible return of a financial crisis in Europe, the appreciation of the yen, on-going deflation and energy supply issues in Japan.

To handle these economic situations and harsh business environment, Sharp will work hard on continuous creation of one-of-a-kind products and change into a new business model, with the aim to become a “globally competitive company”.

®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
HBO shocks US pay TV world: We're down with OTT. Netflix says, 'Gee'
This affects every broadcaster, every cable guy
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
French 'terror law' declares WAR on the INTERNET itself, say digi-rights folks
Liberté, Égalité, Fraternité: Two out of three ain't bad
SCREW YOU, EU: BBC rolls out Right To Remember as Google deletes links
Not even Google can withstand the power of Auntie
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.