Feeds

NEC fires 80 per cent of Packard Bell staff

PB to pull out of retail, senior bosses to go

  • alert
  • submit to reddit

Build a business case: developing custom apps

NEC has pulled the plug on Packard Bell -- at least as a retail-oriented operation, by firing 80 per cent of the subsidiary's staff, including all of its senior management. The reason? PB entirely failed to stem its losses to the extent that backers NEC and France's Groupe Bull required. A PB spokesman, quoted in today's Wall Street Journal, said that the company was on track of post a loss of $150 million. Earlier this year, when PB announced it was laying off 200 support staff, the company said it was on track to get its losses down to $100 million -- believed to be the limit imposed by NEC. Back in July, NEC president Kouji Nishigaki threatened to "sell, merge or close" Packard Bell if the company showed no sign of a turnaround. "If things don't work out in the end, there's nothing to do but get out," he said. According to the WSJ, Packard Bell will close its Sacramento, California assembly plant and sell off the Utah-based call centre that lost 200 staff in July -- the company hopes the buyer will want to retain the centre's 600 staff, but that will still leave 1000 people out of work in Sacramento. Other facilities around the globe, with the loss of a further 1000 jobs. The company will continue with just 300-400 staff. For now, that number will include most of PB senior staff, but they are expected to quit at the end of the year. The layoffs mark NEC's decision to pull PB out of the retail PC market. Where that leaves the company now is a good question: the WSJ suggests it's looking at Internet sales. Earlier this year the company launched the Z1, an executive-oriented machine with a suitably inflated price tag to match. It's not clear how successful the Z1 has been, but it does suggest the kind of less-populated market what's left of Packard Bell can focus on. ®

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
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
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
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
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
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.