Sharp says no decision on job cuts yet, restructuring on cards

Japanese electronics maker Sharp Corp today said it was considering various options based on the company's fundamental structural reforms, but no specific decisions have been made, even as newspaper reports said Sharp was planning to cut around 6,000 jobs in a global restructuring expected to cost over 200 billion yen ($1.7 billion).

Reports quoting unnamed sources said, job cuts will include around 3,000 in Japan through early retirement and 3,000 overseas.

Sharp stated that the reports appeared in Japanese newspapers, Nihon Keizai Shimbun (Nikkei) and Yomiuri Shimbun, today, were based on their speculation on Sharp Corporation's capital enforcement and earnings forecast. However, these reports are not based on Sharp's announcement, it added.

Sharp said it was considering various options to reduce overall fixed costs, but no specific decisions are made apart from the voluntary salary cut of directors and executive officers which was announced earlier.

''We will make timely announcements when any decisions are made for items which require disclosure. We are currently working on our new medium-term management plan, which is scheduled to be announced around May 2015.

Japanese newspaper reports today said the embattled electronics manufacturer would slash about 3,000 jobs through voluntary retirements and likely book about 30 billion yen ($250.00 million) in retirement-related expenses for 2015.

Sharp could also shed its North American television business as part of its plans to restructure operations in unprofitable businesses, the Nikkei said.

The company could also cut more than 2,000 jobs mostly in the Americas, representing about 10 per cent of its workforce outside Japan, the Nikkei added.

Sharp was also expected to lower the pay scale for its domestic workers in 2015, to curb personnel costs as the company trims fixed costs by 50 billion yen ($416.67 million), according to the newspaper.

Shares in Sharp have risen in early Tokyo trading on media reports that the beleaguered Japanese electronics group may cut thousands of jobs to slash costs.

The scrip gained as much as 2.6 per cent rising to Y239 in early trading.