NEC to cut 10,000 workers, forecasts $US1.3 billion loss in year through March

NEC will slash 3,000 jobs outside Japan as it copes with the effects of the Thai floods and problems in its mobile business

NEC said Thursday it will cut 10,000 jobs, including 3,000 outside of Japan, and it now forecasts a US$1.3 billion loss in the current fiscal year through March.

Just three months ago, the company had forecast a net profit of ¥15 billion (US$200 million) for the fiscal year.

It is still suffering from the effects of massive floods in Thailand, which closed two of its factories in the country and crippled its supply of hard disk drives.

NEC's mobile phone business is also reeling, as foreign brands continue to make inroads into the Japanese market, long a safe haven for domestic manufacturers. Like many of its domestic peers, the company has been slow to shift to smartphones and has suffered losses as international rivals like Apple and Samsung capture market share with flashy, high-spec handsets.

Specifics of the job cuts are still being finalized, though they will likely take place in the next fiscal year, which begins in April. The company had 112,000 full-time workers at the end of 2011, and plans to cut 5,000 full-time employees and 5,000 contractors.

Faced with intense competition in consumer electronics, NEC is trying to shift its focus to large-scale industries like cellular infrastructure and big IT contracts. Last year it agreed to launch a PC joint venture with Lenovo in Japan, a deal that includes the spin-off of its personal computer division.

NEC said the bulk of its projected losses for the fiscal year came in the October to December quarter, when it booked a ¥86.5 billion loss on revenues of ¥669 billion, down 7 percent from a year earlier. It said the massive annual loss will include large one-time charges resulting from restructuring, which includes the layoffs, and tax considerations.

The company said the situation in Thailand is getting better, with the scarcity of hard disks clearing since the end of last year. It also aims to reopen one of its Thai factories for March.

The fiscal year for many Japanese companies including NEC runs from April through March.

Join the PC World newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jay Alabaster

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?