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No layoffs from NEC's Singapore office yet

Melissa Chua | Feb. 5, 2009
Company says global reductions will focus on poorly performing business units

SINGAPORE, 04 FEBRUARY 2009 Troubled Japanese electronics giant NEC, which recently announced plans to cut 12,000 jobs outside of Japan, will not be retrenching any of the 300 staff in its Singapore office for the time being, said a company spokesman.

The spokesman indicated the Singapore office might be affected by the company's plans to restructure and trim the group's company organisation globally, but could not provide further details, as this restructuring is only expected to take place during the company's next financial year, which runs from April 2009 to March 2010.

NEC was also unable to furnish any details regarding the fate of the company's other offices in the Asia Pacific, but added that staff and operation reductions would centre around group companies which performed poorly. The company has offices in India, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam.

In line with expectations

According to the company's latest financial results, the firm's information technology and network systems units performed mostly in line with expectations; but its mobile handset and semiconductor units did poorly, due to a drop in demand and the strong Japanese yen, which hurt profits from business outside of Japan.

The electronics giant reported a loss of 131 billion yen (US$1.4 billion) on sales of 948 billion yen, in the final quarter of 2008. The same period in 2007 saw the firm report a loss of just 5 billion yen on sales of 1.1 trillion yen.

 

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