NEC Job Cuts: Japanese Electronics Maker To Slash 10,000 Jobs

TOKYO, Jan 26 (Reuters) - NEC Corp said Thursday it will slash 10,000 jobs, almost one in 10 of its workers, to trim costs after the electronics maker announced a loss of 87 billion yen ($1.11 billion) for the three months to Dec. 31.

The company, which employs 115,840 people worldwide, said it will book a 40 billion yen charge in the business year ending on March 31 to pay for the restructuring.

It blamed its poor performance on tougher competition in the telecoms infrastructure business in Japan from foreign rivals, weak demand for its smartphones and difficulty in expanding operations overseas.

The company, which also cut its forecast for mobile phone sales for the business year to 5 million from 6.5 million, said 7,000 of the job losses would be in Japan.

Shares of NEC finished unchanged from Wednesday's close at 168 yen. In the past year its shares have plummeted 32 percent. The company announced its results and restructuring plan after the market closed.

Comments

[CorpGreedSux]

09:09 AM on 01/26/2012

it's the Apple sweat shopping to blame

why do all corporations fall to the lowest common denomiator

why are they all so greedy and lacking any moral compass

[makebofapay]

02:20 PM on 01/31/2012

Corporations are greedy and lack any moral compass because, contrary to what our Supreme Court says, THEY ARE NOT HUMAN BEINGS.

[mosttruthful]

08:08 AM on 01/26/2012

Obama's Recovery.

[Gneirre]

08:12 AM on 01/26/2012

Nimwit! 7,000 IN JAPAN WILL BE LOST!!! Typical GOP...tunnel vision!

And since you want to make this an American political issue, let's blame Romney. He's the one who likes to take jobs away.

[Vic Nardozza]

08:54 AM on 01/26/2012

No, it's Bush's recovery. Remember him. He's your Republican President who took a budget surplus and a prosperous economy and turned them into huge deficits to give tax breaks to millionaires. I wish people like you would just admit you hate Obama because he's black and stop making up these fake reasons.

[Justtheobvious]

07:12 AM on 01/26/2012

....and hire 20,000 chinese for half the cost!

[SvrWx]

05:37 AM on 01/26/2012

Where's the story?

[SweetWilliam]

07:07 AM on 01/26/2012

I see 10,000 stories.

[SvrWx]

06:35 PM on 01/26/2012

When I opened this up in my iPad this morning, all there was was a picture with no story attached. I guess its an issue with my iPad.