Renesas Electronics said on Wednesday that it will post a 85
billion yen ($1.1 billion) extraordinary loss in the July-September
quarter after a larger-than-expected number of employees volunteered for its redundancy scheme.
The Japanese supplier of semiconductor solutions said that 7,511
employees have applied for its early retirement incentive program.
According to the program, Renesas the retired personnel will receive
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.
Although the number of the applicants is more than the five thousand
and several hundred that was originally expected, Reneasas said that
would have 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.