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NEC to cut 20,000 jobs worldwide

NEC plans to cut 20,000 jobs worldwide as a result of the...

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NEC plans to cut 20,000 jobs worldwide as a result of the global downturn, it said today. The company said it is...

possible some jobs will go in the UK.

A spokesman for the company said 40% of the jobs are likely to go in Japan, with the remaining 60% being cut from international markets. He said it was not possible to break this down into individual countries.

The news came as the company revised its current financial year forecasts to expect a 290bn yen loss (£2.26bn).

About 10,000 full time posts will go, and 10,000 contractor jobs. The company said UK job losses are a "possibility, but we do not have an official breakdown".

The Japanese company has suffered a drop in demand for its electronic components. One main problem, it said, was a huge drop in demand for semiconductors, manufactured by subsidiary company NEC Tokin.

"The semiconductors are installed in products such as cars, TVs and computers," the spokesman said. "Demand for cars and TVs is collapsing, and when that equipment is not selling, we cannot place the semiconductors."

The company has also suffered big losses on its investments, he said.

The time scale of the job losses is not absolutely fixed, but it is likely the process will be complete by the end of March 2010.

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