Jiji Press TOKYO (Jiji Press) — Japan Display Inc. plans to shed more than 3,000 jobs abroad and over 200 in Japan through measures including voluntary redundancy as part of its restructuring efforts, informed sources said Tuesday.
The planned massive streamlining steps will cause the struggling company to incur an extraordinary loss of over ¥100 billion, the sources said.
Japan Display will announce on Wednesday a new medium-term business program featuring structural reforms and a target of returning to the black in fiscal 2018 on a net basis.
The firm is expected to log a huge net loss in fiscal 2017 due to the special loss, according to the sources. Japan Display posted a consolidated net loss of ¥31,664 million in fiscal 2016, which ended in March this year, remaining in the red for the third consecutive year.
Through the planned reform measures, the company aims to turn around its loss-making operations as it plans to invest in a mass production system for next-generation organic electroluminescence display panels.
In Japan, the display maker will suspend its plant in Nomi, Ishikawa Prefecture, and relocate the facility’s workers to a nearby factory, and introduce a company-wide voluntary redundancy plan, the sources said.
Japan Display will cut overseas jobs through the consolidation mainly of its plants in China and the Philippines, the sources said.
The company had some 13,000 employees on a consolidated basis as of the end of March 2017.
With organic EL display business requiring massive investment, Japan Display is considering seeking fresh capital from an investment fund and others as it tries to catch up with South Korean rivals, the sources said.
Japan Display has already received assistance from Innovation Network Corp. of Japan, a government-backed turnaround fund. Mizuho Bank and two other main banks for Japan Display will also support the company by setting up a credit line of ¥110 billion, the sources said.