Renesas to cut 20% of workforce

Hisao Sakuta - Renesas Chairman and CEO

Hisao Sakuta – Renesas Chairman and CEO

Renesas is preparing to cut a fifth of its 28,459 workers, reports Bloomberg.

The 5,400 job cuts come on top of 10,500 layoffs announced when Renesas was bailed out in December 2012 by a state-owned company called Innovation Network Corp of Japan (INCJ) which owns 69% of the company.

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At the time, eight customers also Invested in the company: Toyota, Nissan, Denso, Keihin, Panasonic, Nikon, Yaskawa Electric, and Canon.

The company is 23% owned by NEC, Hitachi and Mitsubishi who put together their chip-making operations to form Renesas in 2003.

When it was formed it was the world’s second largest semiconductor company. In 2013 it was the 11th largest company with sales under $8 billion and a world market share under the important 3% recognised as being necessary for long-term survival as an IDM.

In 2012, the company narrowly escaped being taken over by New York private equity company KKR.

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