Feeds

NEC president falls on his sword after huge losses

Biggest ever financial hit sees top man join the 15,000 NEC staff who've lost their jobs

  • alert
  • submit to reddit

Build a business case: developing custom apps

NEC saw its president resign in the wake of 15,000 job cuts after the Japanese concern’s biggest financial loss in its history. The cuts have started at the top, with president Hisashi Kaneko one of the first to go. Speaking in Tokyo, Kaneko said he would resign and take responsibility for the IT giant’s expected Y150 billion ($1.25 billion)consolidated net loss to 31 March. The losses were partly a result of restructuring costs incurred by NEC’s Packard-Bell unit. They included NEC incurring a special loss of around Y75 billion to pay for the overhaul of the PC manufacturing unit. NEC, which this year marks its centenary, announced an overall restructuring plan to cut expenses, unprofitable business and 15,000 jobs over a three-year period. More than two thirds of those job cuts have already taken place. NEC said efforts had been hampered by falling demand for telecommunications kit in the home, weak semiconductor prices and a strong yen, as well as the general state of the industry. "With our restructuring efforts and the reshuffling of top management, we hope to create a revitalised NEC," said Kaneko. NEC also said it would buy Packard-Bell’s European operation for around $450 million. Kaneko’s resignation will be effective from 31 March. His shoes will be filled by NEC executive vice president Koji Nishigaki. Kaneko managed to retain his post as president last year through the scandal which saw ex-NEC chairman Tadahiro Sekimoto stand down over NEC’s involvement in contract paddling. Although Sekimoto was not implicated, he resigned after three NEC officials were indicted for questionable dealings with the Japanese Defence Agency. See earlier story. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.