Sharp says it will cut 5,000 jobs by March; first cuts since 1950

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

  • -2

    combinibento

    Sharp and cuts... Those words go together like a toothbrush and toothpaste.

  • -1

    Maria

    "natural attrition"... What does that mean? Firing?

  • 1

    MrsT1

    ^ it means retirement and people who leave on their own accord (eg women who leave to start a family and never come back, just don't replace)

  • 2

    2020hindsights

    "natural attrition"... What does that mean? Firing?

    No it means when people leave willingly, i.e. get another job somewhere else, retire etc.

  • 0

    DentShop

    Weak - a bunch of my students work at the company HQ in South Osaka.

    I might be the victim of natural attrition...

  • -2

    ubikwit

    This is just another symptom of fall out from the currency speculation by the finance cretins.

    Clueless politicians don't seem to have a clue about how to fix a broken system that allows this predatory activity to continuously exert a corrosive affect on any national economy that presents a target on the radar screens of the transnational finance sector. The fundamentals which are used as indexes that facilitate this speculation have to be completely reconfigured in a manner that renders currency speculation to the marginal and risky category of economic behavior where it belongs.

    This is a serious blow to the real economy of the areas where these jobs will be lost, and by extension nationwide.

  • -1

    avigator

    What goes up must go down.

  • 1

    marcels

    Sign of the times!!!!!

  • 0

    basroil

    Looking ahead, the company also listed concerns, including Japan’s deflation and electricity supply, as the nation now uses only two of some 50 nuclear power reactors that used to provide some 30% of electricity in Japan.

    And just a few weeks ago the anti-nuclear nutjobs were saying that businesses won't be bothered by a lack of nuclear reactors, and they claim that Japan can do just fine without reactors operational. This is now the second company to raise concerns about power uncertainty.

  • 2

    GW

    Sharp has been in trouble LONG before 3/11 & strong yen , its just using 3/11 etc as excuses now for poor management.

    More & more companies in Japan are going to have to face reality when they thought they were immune, this has been coming like a freight train STRAIGHT at them since the early-mid 90s, just now they & other companies are less able to dodge reality

  • 3

    namabiru4me

    SHARP is just another of many Japanese brand goods manufactures that became complacent with their leading position. Along came S. Korea, Taiwan and China...and yet Japan never changed.

    This outcome was obvious at least 2 years ago. Yep, long before 3/11! (Did I mention that I worked for a supplier of Sharp, Panasonic, Sony, and other major Japanese TV and electronics manufacturers. Anyone who took notice could see it coming without major changes....yet no one budged.)

  • 3

    gaijintraveller

    It is just a sign of the times. I can remember major British companies like Bush, HMV, Decca (TVs and electronics), which are now gone. Then think of the British motor industry, Austin, Morris, Riley, gone, Mini, Rolls, Bentley, now German, Lotus, now Malaysian, and MG which is now Chinese. The same is happening here. I believe what used to be the best Japanese stereo equipment manufacturers, Luxman and Sansui, are now foreign owned as is the white goods part of Sanyo, which was bought by Haier. The pattern repeats.

  • 0

    ubikwit

    @GW and Dog

    I worked on some solar documentation for them a few years ago that seemed to be pretty cutting edge at the time.

    As I recall, one of the patented technologies related to solar cells that were so thin that they were flexible and transparent, and could be stuck onto the glass windows of large buildings.

    We all now that the housing bubble crash has seriously hurt the solar industry everywhere.

  • 0

    ubikwit

    that should read "solar cell documentation"

  • 1

    marcelito

    Electricity supply is a concern for Sharp - hmm....I think a much bigger problem for them is the same as what Panasonic, Sony etc are facing...slow to adap to changing marketplace and new competition, outdated management practices, unimaginative product design and yes , the recent appreciation of the yen... Electricity supply is the least of their issues basroil ...it's just a convenient excuse. There are some J manufacturing companies that are flying high right now such as Hitachi...reason is they shifted from consumer electronics they can no longer profitably compete in to large infrastructure project exports ie. railways, water purification plants, power stations etc...they are doing great and are not whining / using electricity supply as an excuse.

  • 2

    ubikwit

    @namabiru4me

    I don't think that it is fair to ignore the irregular (as in unpredictable) market downturn due, in particular, to the exchange rates.

    Take televisions, for example, I believe that Japanese technology on the leading form of LED at present is notably superior to the corresponding Korean product. That technology relates to the pixels of the IPS panels, which was developed by Hitachi. Have a look at the Wikipedia page (In-Plane Switching) for a brief rundown of advances in the field. Korea's LG is the other company mentioned, but their panels are almost universally rated as inferior, at least from the Japanese consumer reviews I've seen.

    http://en.wikipedia.org/wiki/TFT_LCD

    Even though the Japanese panels would normally carry a premium, consumers not on a tight budget would generally opt to pay that premium for the high-end device's performance benefits. At present, that premium is so high that the comparable products from LG and the like are winning market share, especially as the job market contracts and many consumers are on a tighter budget.

  • 0

    Tigerta9

    Yawn. They will need to double down on that number just to start to make a difference!

  • 0

    wtfjapan

    ah the mass exodus has begun, 5000 cuts = 5000 jobs transfered to cheaper wage earners at foreign factories, watch the rest of J Inc follow suit in the coming years, Japan will end up just being an R&D center with the cheap manufacturing done overseas. But not too worry the J farmers can keep the country afloat with all the revenue they generate for the government, no to the TPP , then let farming lobby find another 5million+ jobs for the out of work manufacturers.

  • 0

    gelendestrasse

    What happened to all those Chinese consumers who were going to buy all the products from the US, Japan, and Europe? Oh, that's right, China stole the intellectual property and built their own!

  • 4

    zichi

    basroil

    And just a few weeks ago the anti-nuclear nutjobs were saying that businesses won't be bothered by a lack of nuclear reactors, and they claim that Japan can do just fine without reactors operational. This is now the second company to raise concerns about power uncertainty.

    As other people have commented, Sharp was having problems even before last year's disasters. But let's remember why almost all reactors are shut down. The disaster last year shut down a number of plants. The gov't requested the Hamaoka plant be shut down until a new sea wall was built.

    The rest of the reactors shut down according to Japanese law and to date the gov't has only given permission for the Oi reactors to restart.

    Not a single reactor shutdown was because of "anti nuclear nutjobs?"

  • -1

    YuriOtani

    These jobs are gone and worse is the Japanese corps are investing in China, Indonesia and India instead of Japan. Fewer jobs means less pay checks and less money in the economy. Less investment means the same, even more lost jobs. So the curse of deflation continues. Am unsure why Tokyo has not followed Washington's lead and just "printed" money. They have introduced more money than China has in Treasury notes. I remind people you can not demand your money and have to wait to maturity. Yes you can dump them on the market but that would raise interest rates for the other holders and China would take a bath. Reducing the value of the yen would be a good way to make Japanese goods more marketable, break the cycle of deflation and bring jobs back to Japan.

  • 0

    ubikwit

    @marcelito

    yes, hitachi has made some smart moves, and recently won a substantial high-speed railway contract in the uk. they are probably the leading japanese company right now, giving toyota and the car manufacturers a run for their money.

    on the other hand, do you think that domestic companies without the wherewithal for that type of large-scale project should simply quit the manufacturing sector in japan? i would agree that they need to expend the energy to broaden their horizons, mind you, but not every company is as nimble as hitachi. i think it is a travesty that companies like samsung can reap an advantage due to this currency scenario.

    according to Dog the people at Sharp were not focused enough to ensure that the marketable products they did manage to develop received the proper presentation and reception they should have, which is the minimal necessity for success in the current market. but at least they had half of the equation right on the R&D side.

  • 0

    ubikwit

    @Dog

    OK, I am not going to argue about the dysfunctional aspects of the inner workings of some of these companies. In fact, I've had first hand experience of that at Fujitsu for a couple of years, and I had some gray hairs from that experience.

    On the other hand, with regard to the budding solar energy sector, the past 2-3 years have seen major players in both the USA and Germany enter bankruptcy or face very difficult financial situations, so if you assume that Sharp may have had a marketable product in those solar cells under normal conditions, they have been shafted by this housing bubble downturn.

    I think this is a travesty, too, considering the global warming problem, let alone the nuclear power plant catastrophe. There would seem to have been some good products being developed by those companies, with a real and present demand that respond to a clear and present danger, which have been put under by the finance crisis.

    And in that regard, the hit that the solar power industry has suffered due to this finance crisis seem to me to be one of the more egregious setbacks in terms of the ideal of free-market economics.

    At least I have to applaud Sharp for trying to make a difference by developing that technology and those products.

  • 0

    sfjp330

    Sharp has too much invested in their LCD TV business. If you have 50 percent sales decline in LCD and loss of over $3 billion in a quarter, something has to give. You can say the same thing with Sony. They are in the same boat.

  • -4

    JeffLee

    We all now that the housing bubble crash has seriously hurt the solar industry everywhere.

    Japan has just crashed from a "housing bubble"? I thought housing prices have been on a slow, steady decline for the last couple of decades.

    @YuriOtani

    Am unsure why Tokyo has not followed Washington's lead and just "printed" money.

    It's the other way around. The Bank of Japan invented quantitative easing, over a decade ago. It was the first to inject massive amounts of liquidity into its financial system starting from around 2000, mainly to deal with Japan's banking crisis and prolonged recession ("Yamaichi shock," which the Japanophiles have since seemed to have forgotten about and instead blame the global economy for all of Japan's woes).

  • -1

    that korean guy

    Sharp going out of business might actually be a good thing for the rest of Japanese Electronics industry. Some sort of consolidation need to happen like yesterday.

  • 0

    2020hindsights

    but not every company is as nimble as hitachi.

    Hitachi were on the block not so long ago...

  • -2

    YuriOtani

    JeffLee the overvalued yen is the source of Japans woes. That and buying all of that gas and oil. If Japan floats the yen money speculators will be burned. The culprits are the Red Chinese. Japan can burn then and end destructive deflation. Higher taxes will only make the deflation worse.

  • 1

    Thomas Anderson

    YuriOtani

    JeffLee the overvalued yen is the source of Japans woes. That and buying all of that gas and oil. If Japan floats the yen money speculators will be burned. The culprits are the Red Chinese. Japan can burn then and end destructive deflation. Higher taxes will only make the deflation worse.

    LOL you're blaming Sharp's woes on all those irrelevant things? You should be blaming the Sharp's CEO for making all the wrong decisions, nothing else. Everything else are just excuses. Oh it's the high yen, it's the flooding in Thailand, blah blah blah, excuses excuses excuses. Fire the damn CEO who is incompetent.

  • 0

    YuriOtani

    Thomas, you just like it because of the value of the yen earned teaching conversational english. Japan and not just sharp is in real trouble.

  • 0

    Thomas Anderson

    Like I said, stop blaming, it's the fault of the CEOs. Sharp's employers are better off for having a more competent CEO.

  • 2

    Thomas Anderson

    Sharp, Panasonic, Sony et al are all failing because they couldn't even compete with Samsung, LG, Apple, etc. They all failed because they continued to make the wrong decisions. They all believed that the Japanese management/technology were superior, and probably still do, and yet the entire world is beating the crap out of them in their own game. It's their own fault for being so arrogant and now they're blaming everybody else for their problems. I'd say suck it up.

  • 1

    GW

    YuriO,

    Sorry but you like most in Japan have been blind as to whats been happening since the late 80s, this has been happening for more than 2decades!

    Take a look at Cda/US, Europe, all were major manufaturers back in the 50-60s even 70s, THEN Japan came on the scene in a big way & manufacturing decreased in Europe & NAmerica. NOW the SAME THING is happening in Japan, many of us here can see it plain as day, there is NOTHING Japan can do, China, India, Vietnam are doing to Japan what Japan did to Europe & NAmerica!

    Its a natural course of events, to think Japan is immune is simply denial & there is a lot of it in Japan but people are starting to see what shud have been obvious 10+yrs ago!

    Sorry to lay it out on you like that but thats they way it is.

  • -1

    ubikwit

    @YuriOtani

    Why are you so fixated on "the red chinese"? That obsession in and of itself makes your comments appear unbalanced.

    @JeffLee

    Of course I'm talking about the global financial crisis caused by the sub-prime housing bubble in the USA, which was global because of the unbridled speculation and interconnectedness of the finance markets transnationally.

    Sharp is just the latest leading company in the solar panel business to suffer this type of setback. Aside from that company that the government loaned 500 million to in the USA (Solyndra), there were also German companies in trouble more recently. I don't think that any of them would have been making big investments had they foreseen the financial crash due to the widespread American sub-prime mortgage scam.

    Like YuriOtani, however, the American administration tried to blame that on the Chinese, too.

  • 0

    Kristianna Thomas

    How does a company get through the tough times? You dump workers. By Sharp dumping 5.000 of its workers there will be less workers to by back what they produce and more workers living in poverty. Due to plant closings and run away shops for the past twenty-five years, there is more workers living in poverty that since the 1950's when Kennedy went to address the rising level of hunger, malnutrition and unemployment in the coal fields of West Virginia; the time of the War on Poverty.

    The more they dump workers, the worst things seem to get.

  • 0

    globalwatcher

    It won't get better, guys. If I were you, I would start pulling retirement fund out from Sharp.

  • -1

    basroil

    Kristianna ThomasAug. 03, 2012 - 03:04PM JST

    The more they dump workers, the worst things seem to get.

    They are primarily an export company. They will dump 5k workers here and then hire 20k workers in tailand, china, or any number of other countries for half the cost. Their cash flow will improve as a result, but Japan will grow weaker as less people are able to find work.

Login to leave a comment

OR
  • African Speaking Sales manager

    African Speaking Sales manager
    JPC TRADE CO.,LTD. (株式会社JPC)、Tokyo
    Salary: ¥200,000 ~ ¥450,000 / Month Negotiable Basic Salary + Incentives
  • Recruitment / HR Generalist

    Recruitment / HR Generalist
    Temple University, Japan Campus - テンプル大学ジャパンキャンパス、Tokyo
    Salary: Commensurate with experience plus transportation from/to TUJ
  • Program Assistant

    Program Assistant
    Temple University, Japan Campus - テンプル大学ジャパンキャンパス、Tokyo
    Salary: Commensurate with experience plus transportation from/to TUJ
  • Portuguese Speaking Sales Manager

    Portuguese Speaking Sales Manager
    Autocom Japan (オートコムジャパン株式会社)、Kanagawa
    Salary: ¥270,000 ~ ¥800,000 / Month Commission Based
  • Interim Administrative Systems Support Lead

    Interim Administrative Systems Support Lead
    Temple University, Japan Campus - テンプル大学ジャパンキャンパス、Tokyo
    Salary: Commensurate with experience plus transportation from/to TUJ

More in Business

View all

View all