English | دری

Sharp cuts 5000 jobs

in International Business

Sharp cuts 5000 jobs

Japan’s Sharp Corporation reported a net loss of 138.4bn yen for the April to June period, prompting a cut of 5000 jobs, in an attempt to cut costs.

 Sharp said that falling prices and a “greater than expected” slowdown in demand from Japan and China, had hurt its earnings.

 The firm has also forecasted its annual loss to be 250bn yen, up from an earlier projection in April of 30bn yen.

 Sharp said it expected “the business environment to remain unpredictable, with increased downside risks”, including “the possible return of the financial crisis in Europe, the appreciation of the yen, the ongoing deflation and energy supply issues in Japan”.

 The fear is that demand will be cut from the eurozone, a key market for Japanese exporters, as the debt crisis spreads to bigger economies such as Spain.

 At the same time, a strong yen also plays a part in affecting firms such as Sharp, by making goods more expensive to foreign buyers and cutting their profits when they repatriate foreign earnings. Since mid March this year, the yen has risen by more than 6% against the US dollar.

Unfortunately domestic demand has not grown enough to offset a decline in foreign sales either, making matters worse for Japanese firms.

 Japan has been battling deflation for many years, and although a dip in prices is welcome by consumers, it can hit the economy and businesses, as buyers put off purchases in the hope of a better deal down the track.

Tags assigned to this article:
japan economySharp job cutsSharp losses

Related Articles

Eurozone manufacturing output showed slight upturn

Eurozone’s Purchasing Manager’s Index (PMI) went up from 45.1 in August to 46.1 in the month. The manufacturing output has

Japan forces through its delayed $1.1tn budget for 2012

Japan’s government has forced through its 2012 budget, after it was stalled by a political battle over plans to double

Toshiba Fined for Price-Fixing

Japanese electronics firm Toshiba has been fined USD 87million for colluding with other LCD makers in a bid to keep

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload the CAPTCHA.