Sharp is planning to let go 5,000 workers over the next three years. Most of the cuts are expected at overseas plans in China and Malaysia.
The Japanese tech giant currently employs around 51,000 souls and most of the cuts will affect its TV business. The company will also halve the number of workers at its head offices and halve the number of its board members.
The cuts are just part of Sharp’s three-year plan to recover from the effects of the global economic downturn. It will also revise its strategic approach, shifting its focus to the production of smaller panels for smartphones and other devices, as they have more added value than big TV panels. However, it will increase production of 4K panels for big UHD TV sets, reports The Asahi Shimbun.
In the grand scheme of things, Sharp hopes to concentrate its efforts on more profitable products and boost revenue. It is looking to recover its credit rating, making it possible to issue corporate bonds. However, its revenues and sales are still going down and it is expected to post a net loss in excess of 500 billion yen.
Part of the problem is that prices of TV sets and LCD panels are declining faster than expected.