Sharp to trim personnel costs again

Kyodo

Struggling Osaka-based electronics maker Sharp Corp. plans to implement additional restructuring measures to save ¥14 billion in personnel costs in fiscal 2012 as part of its turnaround efforts.

The measures, announced Tuesday, include further cuts in salaries, bonuses and fringe benefits for executives and rank-and-file employees, after the company was hit hard by a slump in sales of liquid crystal display television and LCD products.

The company has asked its labor union to agree to a 7 percent cut in the wages of rank-and-file employees — an increase from the currently agreed 2 percent — for one year starting next month and to accept bonuses in December this year and June next year that are half the level paid this June, it said.

Management-level employees will see their salaries reduced by 10 percent — up from 5 percent — for one year from next month and have their bonuses cut in half, the company said.