Sharp 5,000 jobs cut in a 3-year plan seen, to fully recover from financial crisis

By on May 11, 2013 in Asia, Business, Technology, World Comments

Sharp Corporation is set to cut 5,000 jobs over the next three years, as part of its effort to fully recover from the 2008 global financial crisis. This Sharp 5,000 jobs cut was first reported at The Asahi Shimbun, and the electronics giant is expected to formally release their plan this Tuesday, May 14, 2013.

Sharp logo

Sharp logo

According to the report, most the 5,000 employees who will lose their jobs will come from overseas, including some of its directors and advisory positions. Sharp has now 51,000 employees worldwide, and plans to cut the number of it workforce at its main office in Osaka, Japan into half.

The Asahi Shimbun said that they obtained a copy of Sharp‘s midterm management plan, which states that the struggling Japanese technology giant will reduce the number of its directors from 12 to 6, and will also remove a significant number of advisers. This Sharp’s employment reduction is part of their 3-year recovery plan,

During the implementation of their plan, Sharp forecasts annual sales of more than 3 trillion yen ($30 billion) until March 2016, along with a net profit of 100 billion yen and an operating profit of 180 billion yen in fiscal year 2015. To achieve this, Sharp plans to refocus on business areas with huge potential for profit growth.

During the first year of the 3-year recovery period, Sharp purportedly promised its major creditor banks that it will implement cost cutting measures to achieve net profits in fiscal 2013,. In the second and the third years, the company will focus more on profitable products and sales areas to increase its revenue.

Allegedly, Sharp plans to start producing more 4K sets with clearer screens and 70-inch type or even bigger HDTVs for the US market, will also market local appliances, such as washing machines and refrigerators, in Southeast Asia depending on the on regional demand.

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