Japanese electronics maker Sharp reported a 138.4 billion yen ($1.8 billion) net loss for the first quarter of 2012 on Thursday. As a result, the company said it has plans to eliminate 5,000 jobs, or roughly 9% of its workforce, over the next year, according to the AP.

Sharp’s decision to work closer with Hon Hai precision will be responsible for roughly 1,300 of those cuts, Japanese news source The Asahi Shimbun said. Executives will also reportedly take a 20-50% pay cut. Poor performance typically results in a 10-30% executive pay cut, The Asahi Shimbun explained.

The company’s net sales fell 28.4 percent to 458.6 billion yen ($5.9 billion) as consumer interest for its LCDs, flat-panel TVs and mobile phones declined. It also said that its restructuring charges during the quarter were responsible for 14,272 million yen.

Sharp’s president Takashi Okuda recently discussed his company’s shipping plans for Apple’s iPhone 5, which is expected to go on sale sometime in September, no doubt in an effort to conceal its terrible showing during the quarter.

Sharp expects a bigger loss for the business year through March 2013. The company projects a 250 billion yen ($3.2 billion) loss during the second quarter of this year, opposed to the 30 billion yen ($385 billion) loss it predicted earlier.

“As for the future outlook, we expect the business environment to remain unpredictable, with increased downside risks, including the possible return of a financial crisis in Europe, the appreciation of yen, ongoing deflation and energy supply issues in Japan,” the company said in its earnings release. “To handle these economic [situations] and harsh business environment, Sharpwill work hard on continuous creation of one-of-a-kind products and change into a new business model, with eh aim to become a globally competitive” company.”

Sharp said it would make its job cuts through early and mandatory employee retirement, as well as other arrangements. Hopefully these “arrangements” don’t result in massive layoffs, but this is likely wishful thinking on our part.

[via: Sharp (1) (2), AP, Asahi]