NEC culls 20,000 jobs

 

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By Stuart Turton

Posted on 2 Feb 2009 at 08:46

NEC will cut 20,00 workers worldwide by 2010, the company has announced.

During a bleak earnings call, the company announced that losses for the quarter had hit $1.45 billion.

Sales were down 9.9% to a troubling $11.8 billion, compounded by a fall in revenues between April and December of 3.7% to $34.7 billion. Operating income for the period also plummeted from $485 million to $127.

The company has now revised its earnings forecast for the fiscal year ending March. Investors can expect sales to drop from $51.4 billion to $46.9 billion.

In an attempt to address the problems, the company has announced aggressive job cuts. Half of these will be from full-time workers, with the other half from temporary and contract staff.

"We are aiming for 20,000 or more," NEC's president, Kaoru Yano, told a news conference. "It is regrettable that we have to announce such a big downgrade. We must cut waste."

Workers will obviously be delighted to hear themselves referred to in such terms.

To keep track of the losses read our blog.