NEC looks to cut 10,000 mainly mobile jobs on the back of predicted $1.3 billion loss
Japanese handset market in transition
IT giant NEC appears to be a major casualty of the Japanese market's shift towards smartphones, with falling feature phone sales causing the company to project net losses of $1.3 billion in 2011.
Such a figure would represent NEC's third annual loss in four years, with the company likely to cut 8.6 percent of its workforce – around 10,000 jobs – in response.
The challenge ahead
NEC describes current business conditions as "challenging" in its revised forecast, with the company cutting its projected revenues for the year ending 31 March by around $2 billion to an estimated $40.4 billion.
The firm claims this is due, in part, to a "decrease in sales from a decline in mobile phone shipments".
As a result, NEC's previous projection of a $196 million net profit for the period has been scrapped.
Bloomberg reports commentators are urging NEC to pull back from extraneous markets - such a mobile - to focus on the areas of its business where it remains strong.
As such, as many as 7,000 jobs could go from NEC's operations in Japan as early as March – mainly from its mobile operations - with a further 3,000 being pulled from overseas.
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