Japan Display to invite 1,000 early retirements after 5th straight year of losses
TOKYO, NNA – Struggling liquid-crystal-display maker Japan Display Inc. will slash some 1,000 jobs through early retirements, after incurring a net loss for the fifth straight year to March.
The company said in its earnings report Wednesday that it expects to save some 20 billion yen ($183 million) in fixed costs through reduction of the workforce and managers’ pay.
JDI posted a consolidated net loss of 109.4 billion yen in fiscal 2018, hit by sluggish demand for display panels for smartphones in light of disappointing global sales of iPhones.
Global revenue dropped 11.3 percent to 636.7 billion yen while the operating loss halved to some 31 billion yen from 61.7 billion yen.
The company booked an extraordinary loss of 75.2 billion yen, arising mostly from writing down the assets of its Hakusan plant in Ishikawa Prefecture, which makes display products for Apple Inc. iPhones.
Apple last month said its revenue fell 5 percent in the January-March quarter to $58 billion from a year earlier and that quarterly earnings per diluted share dropped 10 percent to $2.46.
Japan Display President Yoshiyuki Tsukizaki vowed to turn around earnings in the fiscal second half to March 2020 through a planned capital partnership with a China-Taiwan consortium, but the escalating U.S.-China trade row could further dampen smartphone exports from China, according to press reports.
The company said last month that it would receive an 80-billion-yen capital injection from a consortium including China’s Harvest Tech Investment Management Co. and major Taiwanese panel maker TPK Holding Co., but the consortium’s final decision has been delayed, according to press reports.