Feeds

NEC offshoot to digest Packard Bell's remains

Japanese giant creates global operation for PCs, servers

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

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. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
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.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.