NEC to cut 10,000 jobs worldwide

Kyodo

NEC Corp. said Thursday it will cut 10,000 jobs worldwide — 7,000 in Japan and 3,000 overseas — in the first half of fiscal 2012 amid restructuring brought on by a decline in earnings partly due to the yen’s recent surge.

The electronics maker revised downward its earnings forecast for the 2011 business year ending in March, expecting to fall into the red, after logging a special loss of ¥40 billion for the job cuts and other restructuring measures.

NEC now expects a group net loss of ¥100 billion for the current business year, due in part to supply chain disruptions following the massive flooding in Thailand, compared with an earlier projected group net profit of ¥15 billion.

It is forecasting group operating profit of ¥70 billion against the ¥90 billion it predicted in October, on sales of ¥3.1 trillion, down from earlier projected sales of ¥3.25 trillion.

For the April-December period, it reported a group net loss of ¥97.52 billion, against a loss of ¥53.57 billion the year before. It saw an operating loss of ¥1.42 billion compared with a loss of ¥12.39 billion, on sales of ¥2.11 trillion, down 3.5 percent from a year earlier.

Last year, NEC and China’s Lenovo Goup Ltd. said they were forming a venture that will enter the personal computer business in Japan, aiming to capture 30 percent of the market in about three years. Lenovo has a stake of 51 percent, while NEC has the rest, they said.