Sharp is considering plans to sell off two factories, located in China and Mexico, which could result in about 3,000 job cuts.
Citing an unnamed source, a Wall Street Journal report Monday said Sharp was looking to sell two factories which assemble TV as part of talks with Taiwanese manufacturer, Hon Hai Precision Industry.
According to the source, the factory in China employs slightly more than 1,500 workers while Mexican factory has about 1,500 employees.
The Japanese company could sell the plants to jointly owned by Hon Hai and Sharp, the source said, adding that both options would affect headcount at Sharp.or Sharp Display Products which is
If the sale of the factories is finalized, Sharp will be cutting a total of 8,000 positions including 5,000 layoffs announced.
Selling its factories is part of Sharp's plans to, as the company is strapped with 1.25 trillion yen (US$12.6 billion) interest-bearing debt.
Taiwanese manufacturer Hon Hai became Sharp's biggest stakeholder after itin late-March.
In August, Hon Hai CEO Terry Gou said the companywith its investment in Sharp despite the Japanese company widening its full-year loss forecast.