Sharp to announce $1.6-B loss, thousands of job cuts–reports

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Tokyo-Japanese electronics giant Sharp will announce later on Thursday a $1.68 billion fiscal year loss and thousands of job cuts as it fights to stay afloat, reports said.

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The Osaka-based company’s 200 billion yen loss is more than six times its earlier prediction of a 30 billion yen shortfall, the leading Nikkei business daily said, adding that as many as 6,000 jobs, or about 10 percent of its global workforce, would be axed.

The company, which holds a press briefing later in the day, will also unveil a drastic capital reduction plan to help wipe away years of losses, according to public broadcaster NHK and the Nikkei, among other local media.

The embattled firm, a major Apple supplier and leader in screens for smartphones and tablets, may also sell the building that houses its headquarters and accept a 200 billion yen rescue package from its banks, NHK said.

Sharp declined comment on Thursday.

The firm lost more than a quarter of its market value Monday following earlier reports that it was planning the capital reduction and the sale of preferred shares, spooking investors who worried about their holdings being diluted.

On Thursday, Sharp shares crept up 0.99 percent to 204.0 yen in the early afternoon.

Sharp, like rivals Sony and Panasonic, has been working to move past years of gaping losses, partly due to bleeding in its television unit, which has been hammered by competition from lower-cost rivals particularly in South Korea and Taiwan.
AFP

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