OSAKA: Japanese electronics maker Sharp Corp. introduced in late April an early retirement system covering some 700 employees in managerial positions aged 55 or over, company officials said Saturday.

Sharp posted its first consolidated net loss in six years in fiscal 2022, which ended in March, but the early retirement system is not aimed at reducing the number of employees, the officials said. The system’s introduction is part of the company’s efforts to enhance employee welfare by preparing the environment for career changes, they said.

Sharp started soliciting applicants to the early retirement system this month. Up to six months’ pay will be added to the retirement money for the early retirees.

The company has no target for the number of applicants.

Sharp once accepted applications for early retirement in the face of a business crisis. The latest scheme is the company’s first institutionalized early retirement system, according to the officials.

For the year through March 2023, Sharp reported a consolidated net loss of some 260 billion yen due to the sluggish performance of a fully owned liquid crystal display unit.

The company has said that it aims to log a net profit in the current fiscal year that started in April thorough cost reductions and other efforts.

JIJI Press