Foxconn founder tells Sharp staff layoffs needed to begin revival

Tokyo/Taipei

FOXCONN founder Terry Gou says there will have to be layoffs at Sharp Corp to turn around the ailing Japanese company, but has pledged that wages will rise and profit-sharing will again be the norm.

"Unfortunately, a close review of the company's operations makes it clear that the level of inefficiency throughout Sharp means that a turnaround . . . can only take place if there is a reduction in costs, and that comes with a very regrettable need to reduce Sharp's workforce," Mr Gou wrote in an open letter, seen by Reuters, to Sharp staff late on Thursday.