Sharp cuts jobs for first time in 60 years

Japanese electronics firm Sharp announced it will layoff 2,000 of its domestic workforce as well as 2,400 global workers, for the first time in 60 years. The cut jobs are a result of sluggish demand for the company's LCD TVs, due to the state of the world economy, as well as fierce competition from Asian rivals that sell cheaper TVs. In total the planned cuts will amount to around 10 percent of Sharp's global workforce.

A statement released by the Osaka-based company explained it planned to shed the jobs - which amount to just over 6 percent of its 30,800 domestic workforce - through a voluntary retirement program. According to Reuters, this will likely target employees aged around 55, as severance packages for this age group usually amount to a year's wages. Workers in their 40s, on the other hand, would be entitled to as much as three years' salary. The offer will be presented to employees in the first two weeks of November, with those who take it up expected to leave their positions in December.

In an effort to turn the company's fortunes around, Sharp said in its statement it is in the process of "improving its earnings structure so that it can compete amid severe global competition by downscaling productions bases and branches, streamlining the headquarters, and adjusting employment to an appropriate level."

Source: DigitalTrends