Japanese consumer electronics maker Sharp announced that it will cut 5,000 jobs by next March, due to increasing losses of its core TV business.
The company currently has about 58,000 employees worldwide.
Moreover, Sharp executives will take pay cuts of 20-50%, more than the initial plans of only 10-30%, the Japanese media reported.
“The uncertain business condition is expected to continue as downside risks for the economy are expected to grow on rekindled eurozone financial worries, a high yen, deflation and uncertain energy supplies,” Sharp said.
Sharp announced a net loss of Y138.4 billion for the April-June period, more than three times larger than the Y49 billion loss in the corresponding period of the previous year.
Sales for the period fell by nearly a third, to Y458 billion.
“The domestic and Chinese demand for liquid crystal display televisions fell at a faster pace than expected,” the company said.
“Tough business climate continued as the slower demand forced production adjustment at factories for large LCDs, while prices fell for finished products and electronic devices,” it added.