TweakTown
Tech content trusted by users in North America and around the world
6,048 Reviews & Articles | 38,912 News Posts
Weekly Giveaway: Win a Biostar J1800NH2 Motherboard (Global Entry!)

NEC set to cut 10,000 from their workforce, iPhone's popularity partly to blame

NEC to cut 10,000 jobs as it faces growing competition from Apple and others

| Business, Financial & Legal News | Posted: Jan 30, 2012 6:23 am

Reuters is reporting that NEC Corp is set to slash an insane 10,000 jobs, which for NEC is nearly one-in-ten of its workers. The slashing of employees is in a move to cut costs as competition from foreign rivals such as Apple are hurting, very badly.

 

TweakTown image news/2/2/22458_06_nec_set_to_cut_10_000_from_their_workforce_iphone_s_popularity_partly_to_blame.jpg

 

NEC have blamed their poor performance on weak demand for its smartphones (they had smartphones?) against the can't-be-stopped iPhone in Japan, as well as other foreign rivals who are competing against NEC in the domestic IT infrastructure business and difficulty in NEC expanding overseas.

 

NEC did have a forecast of a 15 billion yen profit from eight analysts polled by Thomson Reuters I/B/E/S, but are now warning of posting a 100 billion yen ($1.3 billion) net loss for the year to March 31. As you can see, this is quite the difference, 15 billion to 100 billion.

 

Most of the employee cuts will be from their mobile phone business, as NEC have cut their annual mobile phone sales projection by close to 25-percent, bring them down to 5 million phones projected to be sold.

NEWS SOURCES:Reuters.com

Related Tags

Further Reading: Read and find more Business, Financial & Legal news at our Business, Financial & Legal news index page.

Do you get our news RSS feed? Get It!

Got an opinion on this news? Post a comment below!

Latest Tech News Posts

View More News Posts

Forum Activity

View More Forum Posts

Press Releases

View More Press Releases