Sharp has just announced a major shake-up to its top management, with the current CEO and board members getting replaced.
Current CEO of Sharp Kozo Takahashi will be stepping down and filling in his shoes will be Tai Jeng-Wu from Foxconn. Sharp's net revenue has been in a steady decline over the last few years, the company reported a loss of $2.36 Billion in the current fiscal year and the operating loss has tripled from 2014. Foxconn will be reducing Sharp's board to nine members with six of its own executive son it. The Tokyo Stock Exchange will be also be downgrading the share class in August, due to poor performance.
Foxconn has officially signed a deal to acquire Sharp for $3.5 Billion and the forecast was quite positive at the time. Now things look far more grim as was adjudged by Terry Gou, Chairman - Foxconn:
Unfortunately, a close review of the company’s operations makes it clear that the level of inefficiency throughout Sharp means that a turnaround of the company can only take place if there is a reduction in costs and that comes with a very regrettable need to reduce Sharp’s workforce.
With increased competition in the space, Sharp has become a dinosaur in the consumer smartphone and television display space and someone needs to trim the fat, make it leaner. Foxconn Chairman, Gou, thinks that a turnaround is possible given the engineering prowess of the company and future OLED panels which the company is planning to bring to the market.
Sharp's current CEO Takahashi said that he feels responsible for the consecutive losses of the company and expressed hope that the company would flourish under new management.