Japan's Sharp to eliminate 11,000 jobs, sell assets and plants

Japanese consumer electronics company, Sharp Corporation plans to cut 11,000 jobs worldwide and sell assets and plants in order to raise 213.1 billion yen ($2.7 billion), local media yesterday reported.

Running out of options of boosting its balance sheet, the century-old company, which had last month announced to lay off 5,000 workers, yesterday submitted its latest restructuring plans to further improve its fiscal framework to financial institutions in order to secure bank loans.

Under the latest round of job cuts, Osaka-based Sharp will reduce its global workforce of 57,170 by 19 per cent, including reducing 3,100 in Japan through voluntary and age-limit retirement by the end of March 2014.

The company will also cut wages to save almost 50 billion yen ($642 million) in personnel costs in fiscal 2012.

Most of the job cuts will come at TV assembly factories in Mexico, China and Malaysia, which the company has earmarked to sell.

Post this new round of restructuring, banks are expected to offer fresh loans of around 360 billion yen ($4.6 billion) within days, the reports said.