Sharp expects serious net loss this fiscal year

It is understood that on November 1, 2012, Sharp raised its fiscal year operating loss expectation from the previous 100 billion yen to 155 billion yen, and net loss expectation has nearly doubled to 450 billion yen. Sharp expects a serious net loss this fiscal year.

Sharp said that in the second half of fiscal year from October of this year to March of next year, it will realize operating profit. It is precisely this goal that persuades major banks to provide them with a rescue plan of $4.6 billion. Prior to this, the company had operating losses of 168.9 billion yen (approximately 2.11 billion US dollars) for the first half of the fiscal year.

In order to obtain new loans from several banks, such as Mizuho Financial Group and Mitsubishi Financial Group, the company has promised to lay off 10,000 employees and sell assets including overseas TV assembly plants to turn a profit.

Since severance pay usually includes at least one year's salary, the cost of layoffs in Japan remains high.