Company to switch focus from TV to Smartphone and Tablet Screens
According to the Nikkei Business Daily, Sharp are considering the lay off of several thousand workers as losses at Japan's last major manufacturer of LCD screens for televisions grow.
Sharp, it is said, are likely post a group net loss of about 100 billion yen ($1.28 billion) for the April-June quarter after a $198 million settlement in a U.S. LCD cartel case added to its woes.
"We are considering various measures to tackle the difficult situation, and will disclose the details when it is finalized," Sharp said in a statement. Its shares fell up to 5.4 percent in early trading in Tokyo this morning.
Sharp, which posted a record net loss of 376 billion yen in the last financial year has been hit very hard by a drop in demand for its TVs that has left it with a large surfeit of panels produced at its main plant in Sakai.
The company is expecting TV sales to drop by 19 percent to 10 million with sales of LCD panels predicted to jump 29 percent after it retools production to make the smaller screens used in smartphones and tablet PCs.