Renesas Electronics Announces Early Retirement Program

27 Oct 2010

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

Eligibility:
Employees of Renesas Electronics Corporation and its subsidiaries in Japan who are both 40 years old or older and have been with Renesas Electronics Group (inclusive of NEC Electronics Group and Renesas Technology Group) for at least five consecutive years as of March 31, 2011.
Application period:
January 17, 2011 to February 15, 2011
Retirement date:
March 31, 2011
Benefits:
Renesas Electronics will offer special incentives in addition to their retirement payment to employees voluntarily taking early retirement. In addition, outplacement support will be provided through an outside agency for those who request it.

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, home electronics, office automation, and information communication technology applications that help shape a limitless future. Learn more at renesas.com.


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