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NEC Poised for Company-Wide Reorganization.

In a bid to boost profitability, NEC Corp is reportedly planning a company-wide reorganization that will include the liquidation of its loss-making home electronics division, the consolidation of its wireless and defense businesses and the turning of its PC, telecommunications and chipmaking units into independent businesses with separate profit and loss responsibilities. As part of the process, 1,000 staff will lose their jobs, according to reports in the Nihon Keizai Shimbun newspaper.

To offset restructuring-related losses of as much as 100bn yen, NEC plans to sell stock and other assets, possibly even its headquarters building in downtown Tokyo, the paper said. NEC posted a record group loss of 157.9bn yen in the year ended March 31, citing poor sales in its PC and chipmaking business. To soften the blow, in February, the company announced a reshuffling of its top management and said it would 10% of its workforce over the next three years.
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Publication:Computergram International
Geographic Code:1USA
Date:Sep 13, 1999
Words:155
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