NEC cuts 153 staff

Vendor unwraps its new business model resulting in retrenchments across its R&D and general business units

NEC has unveiled its new Australian business structure, which will see 153 staff retrenched.

The organisation has been divided into four business units: Unified communications, managed services, network solutions and display solutions. A research and development (R&D) group outsourced to Australia from Japan will be absorbed back into the vendor's home country operations with 101 staff cut. The remaining 52 retrenchments will come from across the business.

The other 130 R&D staff will be consolidated into a single global development unit focusing on commercial ICT technologies for both local and export markets. NEC Australia general manager, Craig Norton, attributed the changes to customer feedback and said the new structure also addressed financial crisis concerns.

“We refocused and restructured our operations based on what the customers have said are important to them during this economic downturn,” he said. “NEC has created the four business units to help customers link everything together in a way that gives them the greatest efficiency and productivity, allowing them to ride out the economic downturn.”

NEC Australia first announced the strategic restructure of its Australian business in January . The company also recently formed a FTTP partnership with telecommunications provider, OptiComm.

The news comes on the back of staff cuts made by CA at its Melbourne security R&D lab.

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