Sharp Corp says that 2,960 employees have applied for early retirement as part of the company’s restructuring plans.
On Aug 28, the struggling manufacturer announced that it was seeking early retirement among its employees and that the application period would be from Nov 1-14. However, the company received such a large number of applications that it shortened the period to Nov 9.
Sharp estimated the expense of the voluntary retirement program at 25.3 billion yen and said it will be recorded as an extraordinary loss for the third quarter of the fiscal year ending March 31, 2013.
Sharp said it would book a 450 billion yen annual net loss as it undergoes a painful restructuring, underscoring the increasingly bleak outlook for Japan’s hard-hit electronics sector.
It also cut its sales forecast to 2.46 trillion yen from 2.50 trillion yen, while saying it lost 387.58 billion in the first half of the current fiscal year to March, from a year-earlier loss of 39.82 billion yen.
Besides job cuts, Sharp is selling real-estate to shore up its bleeding balance sheet.