Sharp Says Global Workforce Layoffs Not Necessarily Planned
March 26, 2014 – Sharp Corporation of Japan has issued a press release stating that, despite recent reports from two Japan newspapers, the Nihon Keizai Shimbun (Nikkei) and Yomiuri Shimbun, it will not confirm that a global reduction of its workforce is planned. Last week, the Reuters news service, citing unnamed sources, also reported that Sharp would be reducing 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 were said to be in Japan through early retirement, and the rest would be overseas. In 2014, Sharp had some 50,000 employees. Sharp is set to report its third annual net loss in four years.
In a March 19th press release, however, Sharp says that while it’s currently considering various options, no specific decisions have been made at this time. Some options it’s considering to reduce costs include the already-announced voluntary salary cuts for Sharp directors and executive officers. Sharp is currently working on its new Medium-Term Management Plan, which is scheduled to be announced in around May 2015.
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.
- March 2015: SHARP TO CUT SOME 6,000 JOBS FROM GLOBAL WORKFORCE AS PART OF RESTRUCTURING
- February 2015: SHARP FALTERS WITH LATEST FINANCIAL RESULTS, BUT MFP BUSINESS SEES GAINS
- January 2015: SHARP EXPECTS FINANCIAL RESULTS TO FALL SHORT OF FORECAST
- January 2015: SHARP SELLS U.S. HQ IN MAHWAH, BUT WILL LEASE SITE TO STAY THERE
- November 2014: SHARP REPORTS PROFITABLE FISCAL HALF-YEAR; FORECASTS HIGHER SALES FOR FULL YEAR
- August 2014: SHARP REPORTS SMALLER LOSS FOR QUARTER, ON TRACK FOR PROFIT FOR FULL YEAR
- February 2014: STRONG THIRD QUARTER FOR SHARP; RAISES NET SALES FORECAST FOR FULL YEAR
- November 2013: FIRST QUARTERLY PROFIT FOR SHARP JAPAN IN TWO YEARS, STRONG SALES OF COLOR MFPS
- September 2013: SHARP CORPORATION REPORTS SUBSTANTIAL LOSS FOR FISCAL YEAR; MFP BUSINESS RELATIVELY EVEN
- September 2013: SHARP CORPORATION MAY RELEASE NEW PUBLIC SHARES IN EFFORT TO PAY DOWN DEBT
- August 2013: SHARP CANCELS JOINT COPIER SALES COMPANY WITH SAMSUNG
- August 2013: SHARP REPORTS IMPROVING FINANCIAL PERFORMANCE FOR ITS FIRST QUARTER