Renesas Electronics Announces the Result of Early Retirement Program and the Recording of Extraordinary Loss
(PresseBox) (Tokyo, Japan, )Renesas Electronics Corporation (TSE: 6723, hereinafter “Renesas”), a premier supplier of advanced semiconductor solutions, today announced the result of the early retirement incentive program and the recording of extraordinary loss.
1. Overview of the Program
1) Eligible persons: Employees of Renesas Electronics Corporation and its consolidated subsidiaries in Japan
2) Application period: September 18 to September 26, 2012
3) Retirement date: October 31, 2012
4) Benefits: The special incentive will be added to their normal retirement payment. In addition, outplacement support will be provided through outside agencies for those who request it.
2. Result of the Program
Number of applicants: 7,511 employees
3. Recording of Extraordinary Loss
Renesas estimates the extraordinary loss of approximately 85 billion yen in the second quarter of the fiscal year ending March 2013 due to this program. The labor cost will be reduced by approximately 54 billion yen a year with this result.
4. Future Prospects
Although the number of the applicants is more than the five thousand and several hundred that was originally expected, the result has little impact on the Renesas Group's business operations including sales and production.
Renesas is now reviewing the impact on the financial forecasts for the fiscal year ending March, 2013 including other items recorded in the extraordinary income and loss, and will announce the changes if needed.
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