Restructuring events
European Restructuring Monitor (ERM)
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.
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.
Eurofound (2012), NEC, Internal restructuring in World, factsheet number 73036, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/73036.