JAPAN

Electronics maker NEC Tokin to slash 9,450 jobs worldwide

Japanese electronics maker NEC Tokin joined the wave of global layoffs as it announced Tuesday it would shed 9,450 jobs worldwide, including 9,000 overseas, because of the financial crisis.

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REUTERS - Japan's NEC Corp said on Tuesday it would buy out troubled battery maker NEC Tokin Corp by acquiring 38 billion yen ($424 million) worth of new shares and through a stock swap.


Electronics parts maker NEC Tokin is set to post a full-year net loss for the third consecutive year, having been hit by a severe slump in the consumer electronics and auto markets.


The two companies said in a joint statement that NEC decided to help its group's core electronics parts maker as it would be difficult for NEC Tokin to raise money from the market to shore up its depleted capital in the current situation.


NEC's stake in NEC Tokin will increase to 74.3 percent from 39.9 percent as a result of acquiring newly issued shares at 250 yen per share, a 3.4 percent discount on NEC Tokin's closing price on Tuesday.


Then NEC will buy out NEC Tokin's minority shareholders through a stock swap. Details including the swap ratio will be decided later.


Separately, NEC Tokin said it would book a special loss of 26 billion yen as restructuring costs and close three of its seven plants and five of seven field sales offices in Japan.


The company said it would offer early retirement packages to about 450 employees in Japan and plans to cut about 9,000 workers overseas. ($1=89.64 Yen)

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