Troubled electronics giant Sharp is planning a massive employee cull and sell-off of major assets in a desperate bid to return the company to profitability, according to reports that surfaced Tuesday.
Reports from Japan confirm that 10,996 of the company's 57,170 global employees will be gone by March 2014. That amounts to around 20 per cent of the total workforce.
The company will also cut bonuses by 50 per cent and trim back on wages for its remaining employees.
Kyodo News says the sale of assets, including Sharp's stake in Toshiba and some of its international manufacturing factories, will generate a much needed $2.31 billion (UK£1.42, AU$2.22) in cash.
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A Sharp emergency committee, headed by Sharp President Takashi Okuda and set up to oversee the austerity measures, will meet Oct. 1 to implement this turn-around plan.
The committee reportedly said it is aiming for a return to positive numbers during the business year commencing in April 2013.
Going forward, the company plans to strengthen its LCD television business with a greater focus on small and medium screens for smartphones.
The Manjini news service reported that other sectors of the business, including home appliances, office equipment, and solar batteries, will be consolidated into a single company as part of the transition.
Clearly, Sharp is in troubled waters and needs a lift jacket fast.