Sharp Slashes 5,000 Jobs In $1.7bn Bailout

Loss-making Japanese electronics firm Sharp is to cut 5,000 jobs - 10% of its global workforce - as it accepts a $1.7bn (£1.1bn) bailout.

The cash injection was seen as buying the company more time to turn around its fortunes - with its key smartphone display business under intense pricing pressure from Asian rivals.

Sharp, which used to sponsor Manchester United (NYSE: MANU - news) 's shirts at the height of its power, has suffered under the weight of competition in the electronics sector.

It continues to make a wide range of traditional products including TVs, printers and microwaves while also being involved in the manufacture of solar panels and lighting.

It reported a deeper-than-expected loss for its last financial year ending 31 March of $1.9bn (£1.2bn) - its third red figure in four years.

US sales fell 26% on the previous year with total revenues down 5%.

Sharp said the bailouts would be in the form of debt for equity swaps from Mizuho Bank and Bank of Tokyo-Mitsubishi.

Japan Industrial Solutions, a turnaround fund, was also contributing money to its revival efforts.

In return for the help, Sharp confirmed its restructuring would include 5,000 job losses - with 3,500 going in Japan alone.

A voluntary redundancy programme was tied to the announcement.

It has five businesses in the UK. Sky News was attempting to contact Sharp for clarification on whether any UK staff would be affected.