Feeds

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

Electronics giant on the ropes

Security for virtualized datacentres

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”.

®

Security and trust: The backbone of doing business over the internet

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Why Oracle CEO Larry Ellison had to go ... Except he hasn't
Silicon Valley's veteran seadog in piratical Putin impression
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
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?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.