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Aug 21, 2012, 04.48 PM IST | Source: Reuters

Sharp to cut 8000 jobs through plant sales: Report

Embattled TV maker Sharp Corp aims to cut 8,000 jobs or 15 percent of its global workforce, including 3,000 from the sale of two TV factories in China and Mexico to Taiwan's Hon Hai Precision Industry, a Japanese newspaper reported on Tuesday.

Sharp to cut 8000 jobs through plant sales: Report

Embattled TV maker Sharp Corp aims to cut 8,000 jobs or 15% of its global workforce, including 3,000 from the sale of two TV factories in China and Mexico to Taiwan's Hon Hai Precision Industry, a Japanese newspaper reported on Tuesday.

Sharp had previously announced it would cut its workforce by 5,000 positions.

The Yomiuri report is the latest in a recent string on additional steps the troubled TV maker is expected to take to curb costs and satisfy its lenders.

Kyodo News reported over the weekend that Sharp was considering doubling the number of job cuts to 10,000 from the announced plan of 5,000.

"We continue work towards forming the best alliance within our agreement with Hon Hai, but no decision has been made about selling them our factories in Mexico and China," said a Sharp spokesman.

Sharp, with debt of 1.25 trillion yen, is scrambling for money to refinance as much as 360 billion yen of short-term commercial paper and a 200 billion-yen convertible bonds maturing in September next year.

The company will submit an asset appraisal report to its banks next month that will identify businesses the century-old company has to sell in return for funding, sources at the company's lenders have told Reuters.

Mizuho Financial Group and Mitsubishi UFJ Financial Group will provide several tens of billions of yen in stopgap financing until the report, being compiled by two consultants, including PricewaterhouseCoopers , is ready, the sources said on condition they were not identified.

The amount of funding needed will also depend on how much investment Sharp secures from Taiwanese partner Hon Hai.

Sharp's revised restructuring is not likely to be finalised until September, bankers involved in the process have said.

Shares in Sharp, which have fallen more than 35% since the beginning of August, opened down 1.7% on Tuesday. Tokyo's benchmark Nikkei average inched up 0.1% in early trade.

READ MORE ON  Sharp Corp , China , Mexico

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