03 July 2012 Renesas plans to cut costs by $400m a year Yasushi Akao, president, Renesas Following what it describes as a 'drastic decline' in sales following last year's Japanese earthquake and floods in Thailand, Renesas says it is in need of 'urgent business recovery'. To achieve this, the company has announced that it is accelerating its moves to streamline product and to strengthen its cost structure. As part of the latter aspect, it is looking for more than 5000 employees to take voluntary redundancy. In total, the moves are expected to reduce costs by ¥43billion ($400million ) a year. Announcing the plans, Renesas' president Yasushi Akao, pictured, said the company would maintain and strengthen production in its focus areas of mcus, analogue and power and SoCs. He added a programme of shrinkage, transfer or closure of production lines would flow from this. Included in the plan is further outsourcing of leading edge product manufacture, while back end operations would see more use of overseas facilities and sub contractors "We will establish a robust and profitable business structure by ensuring execution of production reformation in Japan and streamlining of employees," Akao concluded. Author Graham Pitcher Comment on this article Websites http://www.renesas.eu Companies Renesas Electronics Europe Ltd This material is protected by MA Business copyright See Terms and Conditions. One-off usage is permitted but bulk copying is not. For multiple copies contact the sales team. What you think about this article: Add your comments Name Email Comments Your comments/feedback may be edited prior to publishing. Not all entries will be published. Please view our Terms and Conditions before leaving a comment.