Japan's Renesas Electronics to slash jobs amid weak chip demand, Nikkei reports (updated)

Renesas Electronics

07/01/2025 16:11

(Updates with further details on the Nikkei report)
       Jan 8 (Reuters) - Japanese chipmaker Renesas Electronics
 6723.T  will cut several hundred of jobs in 2025 due to
sluggish demand for a wide range of its chips, Nikkei reported
on Wednesday.
    The company informed employees of its plans to eliminate
less than 5% of its roughly 21,000-strong workforce in Japan and
abroad, Nikkei's report said.
        Renesas also announced that regular salary increases,
which were scheduled for this spring, have been postponed, the
report added.
  
        The report said Renesas' manufacturing utilization
decreased from over 40% in the July-September quarter to about
30% in the October-December quarter due to weak demand. 
  
        A semiconductor distributor in Japan said "the market
will not recover until at least the second half of 2025,"
according to Nikkei's report.
  
        Renesas did not immediately respond to Reuters' request
for comment.
  

 (Reporting by Adwitiya Srivastava in Bengaluru; Editing by
Shailesh Kuber and Shreya Biswas)
 ((Adwitiya.Srivastava@thomsonreuters.com;))