After Sharp reported its annual report and named the new CEO, Terry Gou, founder of Foxconn, wrote an open letter to all Sharp employees. The letter said that reducing cost is a necessary turnaround strategy, which means Sharp labor force should be diminished.

Sharp earlier released its annual net loss grew 15.1% to 256 billion yen (US$2.3 bn ) for fiscal 2015 and the operating cost is more than tripled from the last year to 162 billion yen.

He also said that layoff will be executed "responsibly and sensitively", while the wage and year-end bonuses will backed to the previous level from May 1st. He also stressed that the reduction of wage and bonus is the past way.