Business News
NEC to cut 10,000 jobs globally, forecasts loss
Jan 26, 2012, 8:26 GMT
Tokyo - NEC Corp said Thursday that it will slash 10,000 domestic and overseas jobs after predicting a full-year loss.
NEC will cut some 7,000 jobs in Japan and post a deficit of 40 billion yen (515 million dollars) to cover the cost of restructurings, the company said in a statement. The company had 115,840 employees at the end of March 2011.
NEC also said it expected to end the current financial year through March in the red with a net loss of 100 billion yen, a reversal from a net profit of 15 billion yen it had projected.
The computer maker blamed tougher competition in mobile terminal business in Japan, poor sales of smartphones and delays in expanding overseas business.
NEC posted a net loss of 86.5 billion yen for the October-December period, compared with a net loss of 26.5 billion a year earlier, while its sales for the quarter fell 7.2 per cent to 669 billion yen, the company said.
NEC also booked an operating loss of 8.2 billion yen for the quarter, compared with an operating loss of 13.5 billion yen a year earlier.
Last year, China's Lenovo Group Ltd agreed to invest 175 million dollars to form a venture with NEC to expand its share in the Japanese market.
Shares in NEC closed unchanged at 168 yen Thursday. The company released earnings results and restructuring plan after the market closed.
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