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To: TREND1 who wrote (43141)	2/19/1999 10:02:00 AM
From: DJBEINO	Respond to of 53903

NEC To Slash Payroll 10% On Expected Record Loss Friday, February 19, 1999 TOKYO (Nikkei)--NEC Corp. (6701) plans to slash about 15,000 employees, or 10% of its group work force worldwide, over the next three years, company officials said Friday. The announcement came after NEC said the same day it expects group net loss to reach 150 billion yen in the year ending March, its biggest-ever loss. The deteriorated performance is blamed mainly on sluggish semiconductor prices, reduced demand from the telecommunications industry and foreign exchange losses. NEC will cut 9,000 jobs in Japan and 6,000 at group firms overseas. The major electric machinery maker will also take a charge of 75 billion yen this fiscal year to finance the restructuring of its unprofitable U.S. subsidiary Packard Bell NEC. The U.S. unit has already halved its payroll. Dividend payment for the second half will be cut to 3 yen from 5.5 yen the previous year for an annual payout of 8.5 yen, a decrease of 2.5 yen. President Hisashi Kaneko will step down on March 26 to take responsibility for the dismal results. Executive Director Koji Nishigaki will take over as president and Executive Vice President Hajime Sasaki will become chairman with representative rights. Among other restructuring measures, NEC plans to cut 20% in capital outlays and 10% in R&D expenses in fiscal 1999. It will also adopt an in-house company system for certain divisions, aiming to reform the management structure. Through the restructuring, NEC aims to reduce group interest-bearing liabilities by 600 billion yen within three years.