The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacture Of Computer, Electrical Electronic And Optical Products Manufacture Of Computer, Electronic And Optical Products 26.40 - Manufacture of consumer electronics
10,000 jobs Number of planned job losses
Announcement Date
26 January 2012
Employment effect (start)
26 January 2012
Foreseen end date
31 March 2012
Description
NEC Corporation, a multinational IT and electronics manufacturer with headquarters in Japan, will cut 10,000 jobs worldwide.
The cuts will affect almost a tenth of NEC's workforce, which comprises more than 115000 workers in total. Around half of the jobs affected will be permanent, full-time posts. Seven thousand job losses will occur in Japan, with 3000 falling elsewhere.
It is reported that demand for the company's smartphones has been poorer than expected. Competitors, including Apple's iPhone, have successfully reduced NEC's market share in this area. Other areas of its business, such as its Japanese IT infrastructure operations, are said to have suffered from rivals' successes.
The exact timescale for the restructuring has not yet been announced. However, the firm expects to make an extraordinary loss of 40 billion yen in the financial year ending March 2012. According to the company's press release, this is "mainly due to business restructuring costs centred on personnel reductions" indicating the cuts could be implemented by then. Also, it is unclear to what extent the EU area will be affected by the cuts as of now.
Sources
26 January 2012: Huffington Post
26 January 2012: BBC News Website
26 January 2012: Reuters
Citation
Eurofound (2012), NEC, Internal restructuring in World, factsheet number 73036, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/73036.
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