Sharp becomes the latest in a long list of firms in the technology sector to fall victim to the credit crunch.

Japanese electronics company Sharp has announced it is to cut 1,500 domestic jobs as high-end television revenue plummets.

The decision comes as Sharp expects to make its first-ever operating loss in the current business year as demand falls. The job cuts are predicted to make cost savings of around ¥200 billion (£1.5bn).

The job losses will be made in the non-regular workforce.

Further cost-cutting methods including pay cuts for managers and the halting of bonuses have also been undertaken.

The company expects to make an operating loss of ¥30bn in the year to March 2009 against Sharp’s previous forecast of a ¥130bn profit, amongst increasing concerns about further economic slowdown.

The prediction was made in the face of third quarter fiscal results for the company showing a 20.2% drop in net sales. For the nine months ending 31 December 2008, net sales were down 10.3% and the operating income was ¥34.8bn, down 73.4% from the same period last year.

Sharp commented that unit sales of LCD TVs increased in the three months to December but sales on a monetary basis decreased owing to severe price declines and the strengthening of the yen.

Sales of flat screen panels have also seen a dramatic drop due to the global lack of demand for computers.