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

EU vision for the future revealed

EU unveils its vision for the future of monetary union. This new vision allows European authorities greater powers including the

Panasonic projects USD 9.6bn loss

Faced with falling sales and reconstructing expenses, Panasonic has forecast a net loss of USD 9.6bn The firm has been

Apple changes its payment policy after Taylor Swift speaks out

Apple Music has changed its payment policy, a day after Taylor Swift withheld her album 1989 from streaming for a

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Your e-mail address will not be published.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*

cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china cheap nba jerseys from china wholesale nba jerseys from china discount nba jerseys from china