Renesas to lose $1.1B with job redundancy scheme

Renesas to lose $1.1B with job redundancy scheme

Summary: Japanese chipmaker will let about 17 percent of worldwide workforce leave through an early-retirement program, which has received 7,511 applicants.

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TOPICS: IT Employment
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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 cut more than 5,000 jobs, 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.

Topic: IT Employment

Liau Yun Qing

About Liau Yun Qing

The only journalist in the team without a Western name, Yun Qing hails from the mountainy Malaysian state, Sabah. She currently covers the hardware and networking beats, as well as everything else that falls into her lap, at ZDNet Asia. Her RSS feed includes tech news sites and most of the Cheezburger network. She is also a cheapskate masquerading as a group-buying addict.

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  • Can you please tell us

    who is Renesas Electronics and what they do for dummies pls... we read the article but my guess is that many of us doesnt know who they are....

    Thanks..
    pepe-el-Toro