Loss-making LCD screen and consumer electronics company Sharp Corp. denied reports that it has decided to make significant job cuts as part of a restructuring of its business. But Sharp said in a statement that it is considering options to reduce fixed costs while laboring under a "severe" business environment.
Sharp also said it is working on a medium-term management plan due to be announced in May.
Reuters reported March 19 that Sharp would cut 6,000 jobs, or 12 percent of its work force, as part of a restructuring that would cost more than 200 billion yen (more than $1.6 billion). About half of the job cuts would be in Japan and implemented through early retirement, according to the Reuters report, which cited an unnamed source.
Sharp, which has been struggling for some time, is set to report its third annual loss in four years. The firm, which supplies display panels to the likes of Apple and Samsung, is struggling to compete in television sales against Samsung and LG Electronics of South Korea and Sony of Japan.
In addition, Sharp has been in talks with banks and is seeking a debt-for-equity swap, according to reports. It also has asked Japan Industrial Solutions, a corporate turnaround fund, for $250 million.
Earlier reports suggested that Sharp's fiscal 2015 net loss could be 100 billion yen (about $820 million), more than three times the forecasted loss of 30 billion yen (about $250 million).
Questions or comments on this story? Contact: peter.clarke@globalspec.com
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