Sharp will be cutting 5,000 jobs to re-focus their production on small-sized panels for devices like smartphones, as well as focusing on producing high end 4K television sets, and large panels that are 70 inches or higher.
Sharp hasn’t been in the best condition for a while now. It was only a few months ago when Samsung, in a surprising move, came to the aid of the Japanese giant when it bought 3% stake of the company. This would provide Sharp with a much needed cash injection worth $110 million, but it was obvious that it was never going to solve all their problems in one fell swoop.
The hits keep on coming as today as The Asahi Shimbun is reporting that Sharp will cut 5,000 jobs as well as several director and advisory positions, and shift its focus toward a three year plan that they hope will get them out of the downward spiral they’ve been in for years now.
Sharp will narrow their focus more toward the production of small-sized panels that are used in devices like smartphones in order to take advantage of the added value they carry. Their plan is both long term and ambitious, with the company forecasting annual sales of over three trillion yen, or $30 billion, an operating profit of 180 billion yen, and a net profit of 100 billion yen. All of this in fiscal 2015.
The majority of those losing their jobs are likely to be overseas (not in Japan), but there will be cut jobs in their homeland as well, most notably in their head office in Osaka which is set to cut half of its workforce. As for their television production, Sharp will be focusing on the high end by producing 4K sets as well as televisions 70 inches or greater.
The company has high expectations and it’s hard to imagine that it will work out for the best, but for the sake of their own workers, Sharp had better hope their new plan succeeds, because it goes without saying that there are plenty of vultures waiting and willing to pick at the dying carcass.