Feeds

NEC offshoot to digest Packard Bell's remains

Japanese giant creates global operation for PCs, servers

  • alert
  • submit to reddit

Build a business case: developing custom apps

NEC has formed a subsidiary, NEC Computers International (NECC), to take over what's left of its failed Packard Bell operation. NECC will cover all of NEC's PC and server activities outside of Japan and China, with its own wholly owned subsidiaries covering specific territories.

The switch over to the new structure will take place on 1 January 2000. Michael Fromont, who's currently running Packard Bell Europe, is to run the whole shebang. Packard Bell Europe has generally done rather well for itself, with the loss-making US operation causing all the trouble. Last year, the company as a whole lost $500 million. This year, PB said it had reduced that to $150 million, but that was still not enough for NEC execs, who had imposed a $100 million target on PB's management.

Back in July, NEC president Kouji Nishigaki threatened to "sell, merge or close" Packard Bell if the company's turnaround wasn't up to spec, and that's largely what has happened over the last week or so since the restructure plan was leaked to the Wall Street Journal.

So, NEC confirmed initial reports that it is closing its US assembly plant in favour of outsourcing production, that it is attempting to sell off its US call centre as a going concern, and that the upshot of all this will be a reduction in PB's headcount of around 80 per cent. Staff were officially notified of the layoffs at the beginning of the month, but are apparently being made to work out their 60-day notice periods.

In the circumstances, we wouldn't expect them to be too productive. As anticipated, the NEC restructure will see the company shift away from PB's retail roots to more corporate-oriented markets, such as system integration and Internet services. It will also continue to offer specialist items like the executive-oriented Z1, though, as indicated by that machine's NEC brand, don't expect Packard Bell to have much of a showing any more. ®

Boost IT visibility and business value

More from The Register

next story
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
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.
5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
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.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?