Renesas Electronics will be letting go 17 percent of its global workforce through an early-retirement program which will cost 85 billion yen (US$1.1 billion) in loss in its fiscal second quarter.
In a statement Wednesday, Renesas said it has received 7,511 buyout applications from staff who opted for early-retirement. The company believes it will save 54 billion yen (US$689 million) annually with the redundancy.
The company noted that the number of voluntary early-retirement applications were more than what it previously expected. In July, the company announced that it expects to, or about 12 percent of its workforce.
However, it believes that this will have little impact on its business operations including sales and production.
In the statement, Renesas said it would review the impact on its earnings forecast for 2013.