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EXCLUSIVE: Senior Execs Quit Sharp Major Restructure Tipped

EXCLUSIVE: Senior Execs Quit Sharp Major Restructure Tipped

Joe Costantino, the Deputy Managing of Sharp Australia has quit along with two other senior executives.

The restructure which is believed to have ordered by Foxconn executives who took over the management of the Sharp Corporation last year, also saw the exit of  Sandra Woods General Manager Administration and Ross McLennan, General Manger Operations and Technical Services Division.

The move was tipped by ChannelNews back in November 2016.See story below

 

Sharp OZ, Staff Queue Up Take Redundancies

Joe Constantino Deputy Managing Director Sharp Australia

Sandra Woods Former Administration Director

Ross McLennan, General Manger Operations and Technical Services Division.

Constantino who oversaw a major decline in Sharp Australia’s consumer electronics business spanning appliances and TV’s is the executive who ordered Sharp’s exit from the TV market despite other subsidiaries around the world achieving growth selling Sharp TV’s.

He is also the executive who axed his contracted merchandising teams to move to a staff model. With months, several of the staff hired by Constantino quit, Sharp product retailers also complained that they were not getting the same level of merchandising service as they did via the previous contractors who are set to be appointed by Hitachi who is currently moving into the Australian appliance market.

Appointed Deputy Managing Director since 2014 Constantino at one point called in his lawyers in an attempt to stop ChannelNews reporting on the problems at the local subsidiary.

On Friday, the Sharp Corporation recorded its first quarterly net profit in more than two years for the October-December period, a sign that restructuring efforts are taking effect.

ChannelNews understands that Sharp Corporation Australia who is set to move to new offices in North Ryde this year is set to be restructured with the Company hiring new executives to run their consumer electronics business.

Globally the fiscal third-quarter net profit was US$37 million, this was a turnaround from a loss of ¥24.7 billion in the year-earlier period, brought about by cost-cutting that offset weaker revenue from slowing sales of display panels and camera parts, the Osaka-based electronics company said Friday.

Sharp last recorded a small net profit during the July-September period of 2014, before sliding into a streak of losses, forcing the century-old company to the verge of bankruptcy. The company’s core display panel manufacturing business was major drain, having lost competitiveness amid fierce industry competition.

The company has shifted to forward-looking restructuring after Tai Jeng-wu arrived as chief executive from Foxconn Technology Group, which took control in August. Foxconn, the Taiwanese iPhone manufacturer formally known as Hon Hai Precision Industry Co., acquired the Sharp last year.

Mr. Tai promised to turn Sharp around by March, committing to a record net profit for the second half of the fiscal year that ends in March.

During the fiscal third quarter through December, Sharp’s operating profit was ¥18.8 billion on ¥571.5 billion revenue. In the same period a year ago, it had a loss of ¥3.8 billion on ¥663.3 billion revenue.

For the full current fiscal year, Sharp said it would record a net loss of ¥37.2 billion, upgraded from the previous loss forecast of ¥41.8 billion.