Japanese electronics maker Sharp will cut 5000 jobs – nine per cent of its worlwide workforce – by next year.

The reduction is a part of its cost-cutting plan after its net loss widened to 138.4 billion yen (US$1.8 billion) in the quarter ended June 30 from 49 billion yen (US$623.42 million) a year earlier.

The losses were blamed on a greater-than-expected decline in demand in the Japanese and Chinese LCD TV markets, production adjustment at large-size LCD plants that resulted from worsening supply/demand balance and ongoing price drops to remain competitive.

Net sales recorded 458.6 billion yen (US$5.9 billion), a significant drop of 28.4 per cent compared to the same period last year. Operating loss stood at 94.1 billion yen (US$1.19 billion).

The job cuts will be achieved through voluntary and mandatory departures.

The company’s net loss is expected to rise to 250 billion yen (US$3.2 billion) for the year ended March 2013. This is far bigger than the previous estimates of 30 billion yen (US$385 million).

GB