Electronics Giant Sharp Incur Huge Losses, 10 Pct Of Jobs To Take A Hit

BANGALORE: Bad times has hit the Japanese Electronics giant Sharp as it faces a heavy loss of which there will be an official announcement from the company soon. The losses are amounted to $1.68 billion fiscal loss and along with that this loss is going to cost some employees their jobs as well while the company is seeking to cut down on its losses, reports ET.

Unlike its earlier loss prediction of $30 billion shortfall, the company has faced about 200 billion yen loss for which the company is making amendments.

Apparently, this Osaka based company has been a major supplier for Apple and makes screens for Smartphones and tablets will see to cut losses and move forward.

It will be axing 6000 jobs or 10 percent of its global workforce and in addition to that it will be planning a severe capital reduction plan to manage years of losses. The company may also be relocating its headquarters and also accept a 200 billion yen help package from its banks.

Though Sharp declined to comment on its loss cuttings, the announcement that is going to happen will word out their procedure to cut down on losses.

The firm lost more than a quarter of its market value 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, Sharp shares crept up 0.99 percent to 204.0 yen in the early afternoon.

Of its market value Sharp lost more than a quarter, following the reports of its share drop, investor’s fear of their shares and making them liquidify their shares.

The losses of Sharp owes to the downtrodden television business where other competitors crept in with low-cost competitions.
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