Sharp to Cut Some 6,000 Jobs from Global Workforce as Part of Restructuring

Sharp Headquarters in Osaka Japan

Sharp Headquarters in Osaka Japan

March 19, 2015 – Reuters reports that Sharp Corporation of Japan will reduce its global workforce by over 12 percent, which would be some 6,000 jobs, as part of a global restructuring program that’s expected to cost more than $1.7 billion.

Of the 6,000 jobs to be cut, half will be in Japan through early retirement and the rest will be overseas. In 2014, Sharp had some 50,000 employees.

Sharp is set to report its third annual net loss in four years.

Earlier this month, The Wall Street Journal reported that Sharp President Kozo Takahashi had been seeking to meet with Sharp’s two main lenders in order to ask for additional financial support, less than three years after its last bailout. Takahashi is said to be presenting a turnaround plan to Sharp’s two main lenders, Mitsubishi UFJ Financial Group and Mizuho Financial Group. These two lenders together hold more than ¥400 billion ($3.3 billion U.S.) in Sharp debt. The plan may involve Sharp leaving businesses such as solar panels and seeking funds from other investors.

Sharp’s financial troubles have largely been due from its LCD-displays business – LCD displays that are typically used in TVs, smartphones, and tablets – while it’s printer/MFP/copier business has generally remained profitable over the last several years.

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