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.

@anthony256
Published Mon, Jan 30 2012 12:23 AM CST   |   Updated Sat, Aug 8 2020 10:29 AM CDT

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.

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

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 SOURCE:reuters.com

Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering.

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