Renesas Electronics Announces Early Retirement Program
Renesas Electronics Corporation (TSE: 6723, “Renesas Electronics”), a premier supplier of advanced semiconductor solutions, today announced an early retirement incentive program for its employees in Japan.
1. Reasons and background to the early retirement plan
Though Renesas Electronics Group’s consolidated net sales and operating income are improving, it still sees the necessity of boosting its profitability in order to be flexible to changing business environments and to manage a stable business operation.
On October 30, 2013 with the aim of realizing a company with a solid, profitable financial base, Renesas Electronics Group formulated its reform plan. Progress has been made via the execution of structural reform measures for profit ratio improvement and via the selection and concentration of business for further future growth. These activities included promoting structural reform measures to become resistant and flexible to business environment changes, improving operating efficiency tailored to each focus domain and realigning the design and development sites for accelerated decision making. To support these measures from both personnel development and organizational standpoints, the Group has also revised its personnel systems including the thorough implementation of a merit-based personnel system.
In accordance with these measures, Renesas has decided to implement an early retirement program to offer special incentives and outplacement support for those employees who are unable to comply with the company’s reform plan and other measures, or those employees who are unable to transfer to other sites to follow the reorganization policy at the design and development sites, etc. (As announced in the press release “Renesas Electronics Announces Results of Early Retirement Program” dated August 27, 2014, the early retirement program for the employees who were subject to be transferred to Takasaki became effective as of September 30, 2014.)2. Outline of the early retirement plan
- Among the employees of Renesas Electronics and affiliate companies in Japan who are 35 or older
- All employees required to move from their current residence as a result of the realignment of the design and developments sites are eligible regardless of age
# of applicants: Approximately 1,800
Application period: December 10, 2014 to December 19, 2014 (planned)
Retirement date: January 31, 2015
Benefits: Renesas Electronics will offer special incentives in addition to their retirement payment to employees voluntarily taking early retirement. In addition, outplacement support will be provided through an outside agency for those who request it.
3. Impact on Renesas Electronics’ financial forecasts
The impact of the early retirement program on the business performance has been incorporated into the consolidated financial forecasts for the third quarter ending December 31, 2014, announced today.About Renesas Electronics Corporation
Renesas Electronics Corporation (TSE: 6723), the world’s number one supplier of microcontrollers, is a premier supplier of advanced semiconductor solutions including microcontrollers, SoC solutions and a broad range of analog and power devices. Business operations began as Renesas Electronics in April 2010 through the integration of NEC Electronics Corporation (TSE:6723) and Renesas Technology Corp., with operations spanning research, development, design and manufacturing for a wide range of applications. Headquartered in Japan, Renesas Electronics has subsidiaries in approximately 20 countries worldwide. More information can be found at www.renesas.com.
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