Foxconn Announces Major Changes in Sharp Executive Board Following Takeover
Following the successful takeover of the troubled display manufacturer Sharp, Foxconn has revealed the changes it plans to make in the management: Twelve of the 13 Sharp board members will be replaced, and the Sharp board will shrink to nine members, six of whom will be appointed by Foxconn by June, reports the Wall Street Journal.
After the acquisition is completed, Sharp’s CEO Kozo Takahashi will also be replaced by Foxconn’s No. 2 executive and “the right-hand man of Foxconn Chairman” Terry Gou, the report reads.
Commenting on the changes following the $3.5 billion deal, Atsushi Osanai, a professor at Waseda Business School, said it will help the company, as Foxconn aims to turn around Sharp within several years by adding its engineering talent. Terry Gou described its company’s engineering talent as capable of inventing breakthrough technologies.
Despite hopes of keeping as many jobs as possible, the turnaround plan will also include job cuts after the takeover is complete. Sharp has already cut thousands of jobs in the past few years.
“Unfortunately, a close review of the company’s operations makes it clear that the level of inefficiency throughout Sharp means that a turnaround of the company can only take place if there is a reduction in costs and that comes with a very regrettable need to reduce Sharp’s workforce,” Mr. Gou said in an email that was sent to Sharp employees on Thursday and reviewed by The Wall Street Journal.
The Foxconn CEO aims to transform Sharp into a major provider of next-generation displays, including organic light-emitting diode displays.