Sharp, a Japanese company that was recently acquired by Taiwan’s Hon Hai Precision Industry Co. (Hon Hai, or “Foxconn”), is reportedly going through layoffs.

After Sharp suffered serious losses in the fiscal year of 2015, the company is planning to lay off 1,000 employees, hoping to reduce costs and increase sales, according to Japanese media. They may start out with its solar PV division, which is in the worst financial condition.

“Foxconn conducts manpower adjustment every year and thus manpower adjustment is inevitable for Sharp as well,” said Terry Gou, Chairman of Foxconn. He indicated that he will allow Sharp’s employee to be in a position that suits him/her the best and have younger employees to try out different positions.

But Sharp’s spokesman said that the company hasn't confirmed the layoff yet. They will announce the final decision regarding the layoff in mid-May.