TOKYO, Japan, October 27, 2010 — Renesas Electronics Corporation (TSE: 6723), a premier supplier of advanced semiconductor solutions, today announced an early retirement incentive program for its employees in Japan, which was approved at a meeting of its board of directors on October 27, 2010.
1. Reasons and background to the early retirement plan
Targeted to achieve sustainable and robust growth, Renesas Electronics has been promoting its “100-day Project” by reviewing all of the former companies' respective management resources to maximize the merger synergies, and by evaluating measures to achieve the company's business goals. (Renesas Electronics Corporation began on April 1, 2010, after the integration of NEC Electronics Corporation and Renesas Technology Corp.)
Based on the 100-day Project, Renesas Electronics has been implementing structural reforms to create a business structure with stable profitability, aiming to achieve a two-digit operating profit ratio. The company expects to record a total special loss of approximately 77.0 billion yen in the fiscal year ending March 2011, including approximately 53.0 billion yen from manufacturing structural reforms and approximately 24.0 billion yen from streamlining human resources. As part of these measures, the company has decided to implement an early retirement program.
2. Outline of the early retirement plan
3. Impact on Renesas Electronics' financial forecasts
While no upper limit or target has been placed on the number of applicants, Renesas Electronics anticipates the program will reduce its workforce by approximately 1,200 people and the cost of the program will be charged to the earnings in the fiscal year ending March 31, 2011.
About Renesas Electronics Corporation
Renesas Electronics Corporation (TSE: 6723) delivers trusted embedded design innovation with complete semiconductor solutions that enable billions of connected, intelligent devices to enhance the way people work and live. A global leader in microcontrollers, analog, power and SoC products, Renesas provides comprehensive solutions for a broad range of automotive, industrial, infrastructure, and IoT applications that help shape a limitless future. Learn more at renesas.com. Follow us on LinkedIn, Facebook, Twitter, and YouTube.
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