Renesas to cut 20% of workforce
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.
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.