NEC plots retreat from European PC market

 

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By Reuters

Posted on 6 Feb 2009 at 08:37

NEC is considering withdrawing from the PC business in Europe, as it looks to stem losses.

NEC is expecting a $3.2 billion annual net loss and is now accelerating restructuring efforts, which could see it cut more than 20,000 jobs worldwide as it retreats from Europe, the Middle East and Africa.

Competition with rivals such as HP and Dell has been fierce and has already seen NEC sell its retail PC business in Europe in 2006.

Its French subsidiary, NEC Computers SAS, now ships about 400,000 desktop and notebook PCs a year to corporate customers, which accounts for about 13% of its total PC shipments.

A NEC spokesman says the company is talking with union representatives at its French subsidiary on ending PC production and downsizing the plant which employs about 510 workers.

The factory also makes server-related products.