By: Jalen Chung and Frances Huang
Taipei, May 13 (CNA) Hon Hai Precision Industry Co. (鴻海), the world’s largest contract electronics maker, confirmed Friday that it has informed Sharp Corp.’s employees that layoffs will be necessary to help the struggling Japanese firm restructure its finances.
Hon Hai, also known as Foxconn outside Taiwan, confirmed the news after Bloomberg reported earlier Friday that Hon Hai Chairman Terry Gou warned in a letter to Sharp employees of the need for layoffs after the Japanese manufacturer reported massive losses for the year ending in March.
Hon Hai signed an agreement on April 2 to acquire a 66 percent stake in Sharp for 388.8 billion Japanese yen (US$3.5 billion).
Gou stressed it was an “investment” rather than an “acquisition,” but Hon Hai Vice Chairman Tai Cheng-wu (戴正吳) was named on Thursday by Sharp’s board of directors as the company’s new president, and the layoff warning further confirmed that Hon Hai is taking charge. [FULL STORY]