Pakistan PM says nation giving "Befitting Reply" to Indian strikes    Health Minister orders expansion of residency training programmes to strengthen medical workforce    Egypt steps up export reforms with focus on quality standards, market insights, and global expansion    Egypt's FRA warns against unlicensed financial investment schemes    Gaza faces humanitarian collapse amid escalating Israeli offensive, healthcare breakdown    CIB Egypt extends EGP 2.45bn bridge loan to SODIC for North Coast 'June' project    Al Ismaelia, Coventry University Cairo partner on urban development education    Egypt's net FX reserves rise to $48.144b in April – CBE    Egypt's EDA backs local vaccine industry    Eurozone services stagnate, manufacturing lifts growth    Oman, Algeria agree on $298m investment, energy deals    Cabinet hails WHO measles-free status as milestone in Egypt's health reforms    Egypt's Public Business Min., EHA chairman explore cooperation    Euronext supports EU defence financing with new measures    Egypt's business leader hails tax relief package as key to trust    Israel expands Gaza offensive, drawing international condemnation    Egyptian FM addresses Arab Women Organization Conference opening    Egypt's Sisi praises Bohra community's restoration efforts of Islamic sites    Egypt, Saudi Arabia deepen health sector cooperation with comprehensive MoU    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Cabinet approves establishment of national medical tourism council to boost healthcare sector    "5,000 Years of Civilizational Dialogue" theme for Korea-Egypt 30th anniversary event    Sudan conflict, bilateral ties dominate talks between Al-Sisi, Al-Burhan in Cairo    Cairo's Madinaty and Katameya Dunes Golf Courses set to host 2025 Pan Arab Golf Championship from May 7-10    Between Women Filmmakers' Caravan opens 5th round of Film Consultancy Programme for Arab filmmakers    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Ancient military commander's tomb unearthed in Ismailia    Egypt's FM inspects Julius Nyerere Dam project in Tanzania    Egypt's FM praises ties with Tanzania    Egypt to host global celebration for Grand Egyptian Museum opening on July 3    Ancient Egyptian royal tomb unearthed in Sohag    Egyptian Minister praises Nile Basin consultations, voices GERD concerns    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Japan's Sharp to cut 6,000 Jobs in Global Restructuring: source
Published in Amwal Al Ghad on 19 - 03 - 2015

Japan's loss-making Sharp Corp (6753.T) intends to cut 12 percent of its workforce in a global restructuring expected to cost more than $1.7 billion, a person familiar with the plan said on Thursday.
The job cuts will total around 6,000, half of which would come in Japan through early retirement while the rest would be overseas, according to the person, who was briefed on the matter but declined to be identified as a formal decision has not been made.
On track for its third annual net loss in four years, the LCD screen and consumer electronics manufacturer has been in talks with banks, seeking to secure its second major bailout since 2012 while working on a fresh plan to overhaul its business.
Sources have said a debt-to-equity swap would be a logical option and that Sharp has also asked Japan Industrial Solutions, a corporate turnaround fund, to invest up to $250 million in capital.
The person who spoke to Reuters on Thursday said a debt-to-equity swap and an investment from the fund would likely help cover the restructuring costs of more than 200 billion yen.
Sharp declined to comment on reports of restructuring plans, saying that it has not made any announcements.
Expectations that Sharp would embark on further restructuring with the blessing of its banks helped its shares end 2.2 percent higher.
NO LCD OVERHAUL
Any decision to slash headcount would come on top of 5,000 jobs cut in Sharp's previous round of restructuring that began three years ago when it was bailed out by banks with loans and credit lines worth 360 billion yen, or $3 billion at today's exchange rates.
Media reports have also said new steps that Sharp may embark on include shedding its North American television business, lowering pay for workers in Japan, shutting a TV factory in Mexico and cutting the size of its North American sales division.
But Sharp, which supplies screens to Apple Inc (AAPL.O) and other smartphone makers, so far seems unwilling to bite the bullet on problems in its LCD panel business, said UBS analyst Ryosuke Katsura who reiterated a "sell" rating on its shares.
"Sharp's LCD panel factories are currently operating at close to full capacity, but with demand limited... we believe inventories are building up, which is a problem the firm seems to be putting off," he said.
There has also been much speculation that Sharp's LCD business, which accounts for the bulk of its profits, would be better off if was bought by rival Japan Display Inc (6740.T) which has staged a strong comeback to eat into Sharp's sales of smartphone screens in China. Sharp has denied that it is considering such a move.
Source: Reuters


Clic here to read the story from its source.