Renesas Electronics will cut more than 5,000 jobs, or 12 percent of its global workforce in a bid to trim losses.
The job cuts will be achieved through offering incentives and early retirements, and could save the company 43 billion yen (US$539 million) annually, the Japanese chipmaker said in a statement Tuesday. It may also close or sell up to 10 of its 18 domestic plants in three years.
The company will give the buyout offer to workers from Sep. 18 to Sep. 26 this year, and those who accept will have to leave by Oct. 31, the statement noted.
"In these circumstances, Renesas is further accelerating its moves to achieve more efficient production and strengthen its financial basis to enhance its profitable structure," the statement said.
Renesas is not the only Japanese company that has been cutting jobs to reduce losses recently. Electronics giant Sony, in April, had announced