Following April’s merger between NEC Electronics Corp and Renesas Technology Corp to form the new Renesas Electronics Corp (Tokyo / Japan; www.renesas.eu), the chipmaker intends to cut some 5,000 positions by 2013. Most jobs are slated to be cut in the ongoing financial year (31.03.2011), the company said.

While cutting jobs in Japan, the company plans to grow its business abroad, especially in China. The number of employees outside of Japan is expected to grow to 32% by 2013 – currently the workforce abroad accounts for 29% of the total. The chip manufacturer presently employs some 48,000 workers in 20 countries. By March 2011, that number is expected to decrease to 45,000.

Renesas Electronics is counting on revenues reaching YEN 1.19 bn (about EUR 10.5 bn) in the ongoing financial year, with expectations for YEN 7 bn (EUR 62m) in operative and a net loss of YEN 80 bn (EUR 709m), related to having to finance the repositioning.