NEC to Abandon What Remains of its EMEA PC Biz

Sixty percent of job losses will be outside Japan

Feb. 10, 2009 05:00 AM

NEC is pulling out of the PC business in EMEA, intending to shutter its assembly plant in France where it also makes servers and leave what remains of its 1% PC share to the likes of HP, Dell and Acer. It will outsource server production.

It's been shipping around 400,000 laptops and desktops to corporate accounts. The units represent about 13% of all its PC shipments worldwide and it's been losing money on the operation for the last three years; reportedly it couldn't even sell it off.

NEC, which sold its retail PC business in Europe in 2006, is hurting generally. It's expecting to lose $3.2 billion in the year ending in March on sales down 9% and said last week that it will cut 20,000 jobs and pull out of weak businesses. Sixty percent of the job losses will be outside Japan.

The company sells more PCs in Japan than anybody.

Published Feb. 10, 2009— Reads 2,457
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About Maureen O'Gara
Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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