Sharp To Axe 11,000 Workers, Sell Off Assets In Desperate Bid To Return To Profitability

Sharp is in a bit of trouble and is looking to trim its businesses as a result. The company plans to slash its worldwide workforce by 11,000 souls. The company also plans to generate $2.74 billion by selling off various assets and offloading its subsidiary and shares in Toshiba Corp.

These moves, submitted to financial institutions yesterday and obtained by Kyodo News, aims to return Sharp to profitability by next April. If successful, the plan should result in a net profit of $187M.

Kyodo News does not detail when the layoffs will commence. However, Sharp’s previous layoff plan, which targets 2,000 employees, aims to pink slip employees between November 1-14.

This latest restructuring plan involves Sharp ridding itself of several big-ticket assets including overseas manufacturing plants. The company also plans to profit by selling off its subsidiary and shares in Toshiba Corp.

Sharp hopes this desperate plan will help realign the company. To help guide the company through this restructuring, Sharp set up an emergency management committee headed by President Takashi Okuda. If the 100-year old company is to be saved, expect more big cuts and moves in the future.