Feeds

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

Electronics giant on the ropes

Build a business case: developing custom apps

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”.

®

Boost IT visibility and business value

More from The Register

next story
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.