Layoffs farce reason? Hon Hai / SHARP disagreement

SHARP (Sharp) 12 in Japanese stocks last year after the publication (2015, April 2015 -2016 year in March) earnings profile was "the world's highest Ming Kee will lay off 7000 people, but not long after the content is deleted, changed to" in the global personnel appropriate measures ", and this happens because the main layoffs farce between Hong Hai and SHARP for retrenchment divergent views, one party (Hong Hai) as soon as possible to let SHARP turn to sword strokes (SHARP), one is worried about the fear of not cutting down the morale of more?

Nikkei News reported on 14, Hon Hai and SHARP between on whether retrenchment of disagreement, Foxconn early let SHARP turnaround therefore seem to consider the number of employees of SHARP Japan slashed 3000 people, but SHARP is worried about again if large-scale layoffs let fear loss of talents, will further lower the morale of employees.

Reported that if SHARP big layoffs, fear of talents to accelerate the speed, but this should not be welcomed by Foxconn, Hon Hai chairman Terry Gou, had promised to maintain the principle of SHARP employees employment, no layoffs, but with the deterioration of the performance of SHARP, also let Terry Gou seems to have a change of heart. Due to sustained performance, the number of SHARP employees in Japan over the past 4 years has been reduced by up to 10 thousand people.

According to reports, Foxconn completed on SHARP's contribution, considering the current SHARP implementation of the wage cuts abolished as soon as possible (management, general staff cut 5% minus 2%), but on the other hand, the full implementation of management system "(xinshangbifa downgrade credit will reward, the guilty must be punished)" measures to let hung the current strength of the doctrine of penetration into the SHARP. At the end of March 2016, SHARP has been in debt (debt over assets of more than, even if all the assets are sold can not pay off the debt situation), also let the growing influence of Hon Hai chairman Terry Gou, and Hon Hai on SHARP's investment is expected to be completed at the end of June, when SHARP may be forced to make tough decisions.

ThomsonReuters and Toyo Keizai reported 13, Hon Hai chairman Terry Gou and SHARP will serve as the next president of the Wu Dai Zheng 12 evening to SHARP staff sent a joint letter mail, "said recently on SHARP operation were investigated, unfortunately, if not judged layoffs and other cost reduction measures, the operation of SHARP cannot improved". Thomson Reuters pointed out that the content of the message also shows that Terry Gou believes that SHARP to rebuild, layoffs are necessary, but Terry Gou also mentioned in the above message will increase wages and profit sharing.

Terry Gou compared to the above layoffs is necessary, the remarks, SHARP President Takahashi Kimi at the 12 annual earnings statement stressed that there is no consideration of the voluntary early retirement of the recruitment measures. Hon Hai's contribution to SHARP has not yet been completed, it can not be discussed in detail".

Japanese media daily news 13 days without citing sources pointed out that the consideration of the Hon Hai SHARP resorted to layoffs, the highest plans to lay off 7000 people, as the object of the solar cell business sales and repeat the Hon Hai SHARP overseas locations, sluggish and the headquarters of the management department, and will be in this year (the end of the fiscal year ended March 2017) implementation. According to reports, in order to allow SHARP to turn into a loss in the early, Hon Hai judged by the need for bold fixed cost reduction measures.

The Nikkei news said in April 1st report, the OLED panel is positioned as a pillar of the reconstruction of SHARP Foxconn, Hon Hai / SHARP plans to drop 200 billion yen to invest in OLED panel, expected by large-scale investment after Samsung and other manufacturers in South Korea, but according to industry related sources, when operations before the crisis, leading to technical personnel inside SHARP master OLED have left to leave, so "OLED production technology research and development is very difficult".

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