Now we know why the company decided to fire 5,000 people

May 14, 2013 14:11 GMT  ·  By

Over the past couple of years, it became obvious, from various financial reports and rumors, that electronics manufacturer Sharp wasn't doing so well.

Not long ago, it even came to light that the corporation would fire 5,000 people, because it needed to do everything it could to become profitable again.

Now, though, it is clear that becoming profitably will be very hard indeed. After all, the loss incurred during the past year is the largest ever registered in Sharp's last 100 years of business.

Long story short, Sharp lost 545 billion yen, which happens to correspond to $5.3 billion / €4.08 billion.

Sharp hopes to make at least 5 billion yen during the fiscal year set to end in 2014 ($49 million / €38 million).

The loans from Mizuho Financial Group and the Bank of Tokyo Mitsubishi UFJ will determine the success of that goal, as will the new administration (the current President Takashi Okuda will be replaced by Executive Vice President Kozo Takahashi in June).

Source: The Wall Street Journal