With the current world economy looking not as favorable as it should be, the Japanese company Sharp Corporation is said to be having thoughts on laying off 5,000 of its employees cumulatively. Since Sharp has different manufacturing plants and offices worldwide, this number represents only the total number of the possible jobs to be lost and not the distribution of the losses.
Currently, Sharp has over fifty thousand people employed – making the layoff plans a reduction of about ten percent of the total workforce of Sharp. The possible cut is projected to alleviate the company’s reducing revenue, attributed to the decrease in the demand for Sharp’s products. Sharp’s TVs alone experienced a significant blow in the market, leaving the company with tons of LCD panels in its factories – without any prospects of being liquidated any time soon.
Aside from the seemingly poor performance of Sharp products in the market, it also faces a cartel case in the US, adding up to the losses. The $198 million settlement creates further damage to Sharp, considering that this could have already been part of its revenue for the second quarter of the year.
Rumors regarding a Taiwanese company’s interest on the ownership of Sharp’s LCD factory in Sakai, Osaka have also started to surface. These speculations instigate the worries of many that the Sakai employees are the first to be laid off, but these rumors have no solid proof as of the moment. In addition, even if the ownership of the factory is transferred to another company, it is possible that the employees would not be directly dismissed, considering that it would still need to have workers at the factory – and keeping Sharp’s current employees would be more convenient for the prospective new owner.
However, in a different perspective, Sharp’s subsidiary in Indonesia is looking more positive than the rest of the company’s constituents. A representative from PT Sharp Electronics mentions that they will not be affected by this manpower reduction, and will in fact have about a thousand new jobs in the company by 2014. This is a relief for many, especially that the company has almost 4,000 employees in Indonesia at the moment.
In essence, the move will be implemented by letting go of some individuals in plants that are no longer fully functional and by imposing early retirement: reducing its manpower significantly. Voluntary early retirement is also a more favorable option for the company.