NEC Forecasts $1.3 Billion Loss, Ready To Cut 10,000 Jobs Worldwide

Bad news from Japanese tech powerhouse NEC: the company yesterday announced [PDF] a net loss of $1.13 billion in the three months through December 2011, compared with a net loss of “just” $350 million in the same time frame last fiscal. NEC said it wrote down its deferred tax assets.
For the three-month period, revenue dropped from $9.3 billion to $8.7 billion year-on-year. For the full fiscal (which ends in March this year), NEC now expects a net loss of $1.3 billion. The company says restructuring costs alone will cause a $520 million net loss.
As a reaction to these numbers, NEC said it will cut a total of 10,000 jobs worldwide by the first half of 2013.
To be more concrete, 7,000 NEC employees in Japan will lose their jobs, while the rest will be laid off overseas. Among those 10,000 people, a total of 5,000 are outsourced or part-time workers (the other 5,000 workers are full-time NEC employees). Worldwide, the company employs around 116,000 people currently – full-time, part-time and outsourced workers combined.
Source:http://techcrunch.com/2012/01/27/nec-loss-job-cuts/?grcc=88888Z0