Feeds

NEC slashes 10,000 jobs – blames Thai floods, smartphone slump

Japanese IT giant a victim of Apple's success

SANS - Survey on application security programs

NEC is set to slash 10,000 jobs including 3,000 unlucky employees from its workforce outside of Japan, after its revised forecast revealed the Japanese electronics giant would make a year end net loss of ¥100bn (£820m).

The firm did not reveal exactly where in the business the jobs would go, and said the overseas cuts would be made “in accordance with the review of manufacturing operation”. However, its financial forecast document (PDF) reveals some clues.

It shows a Mobile Terminal Business in dire straits, with smartphone shipments revised down for the year from 6.5 million to 5 million units and delays to the expansion of its overseas business. The success of “foreign vendors' increasing market share in Japan” was also noted, no doubt a reference to the huge impact the iPhone has made in the land of the rising sun.

NEC has also been hit hard by the flooding in Thailand, which virtually submerged two key components factories and strangled its supply of hard disk drives.

It's not the first tech firm to admit it has been affected either, with EMC, Dell, HP and Microsoft all blaming the natural disaster for poor financials and price hikes recently.

As a result, NEC was forced to issue a revised forecast for the fiscal year end which saw put sales at ¥3,1 trillion, ¥150bn less than the previous forecast, and operating and normal income both reduced by ¥20bn yen.

Aside from the job cuts, NEC will also focus investment on the three areas of the business that are actually doing ok: IT services, carrier networks and ‘social infrastructure’, which includes things like digital broadcasting technology and disaster prevention systems.

In doing so, future plans include expanding the LTE, services and smart infrastructure businesses internationally. ®

High performance access to file storage

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.