Japan’s Renesas to cut less than 5% of global workforce

Renesas Electronics Corp’s logo is seen on its product at the company’s conference in Tokyo, Japan, April 11, 2017. REUTERS/Toru Hanai/File Photo Purchase Licensing Rights

Japanese chipmaker Renesas Electronics (6723.T), will cut less than 5% of its global workforce, amounting to fewer than 1,000 positions, as it grapples with sluggish demand for its chips.

Renesas, whose customers include automakers Toyota (7203.T), and Nissan (7201.T), has also cancelled salary increases including for executives planned for this spring.

The company did not provide an exact number of jobs to be cut.

The layoffs will enhance the company’s “ability to execute the long-term growth strategy, while taking into consideration continuing market softness,” Renesas said.

Known for automotive chips, Renesas is diversifying its business and last February announced it would buy electronics design firm Altium for $5.9 billion.

Renesas shares fell 3% in Tokyo trading on Wednesday.

Source: www.reuters.com