Renesas Electronics’ rationalization to include personnel structure optimization

January 18, 2013 // By Julien Happich
Renesas Electronics Corporation announced it will pursue “further rationalization initiatives, including further optimization of the personnel structure.” Personnel rationalization measures will be centered around an early retirement incentive program, the restructuring of production facilities in Japan, and other initiatives.

As announced on December 10, 2012, in “Renesas Electronics Revises Full-Year Forecasts,” due to factors such as prolonged debt worries in Europe, further market slowdown in China and other emerging economies as well as the effect on demand from the increased uncertainty in Japan-China relations, the Company has lowered its financial forecasts, and the sales are on a downward trend.

While slimming down and improving the efficiency of the organization, the company will restructure its subsidiaries. Since the merger of April 2010, the Company has endeavored to make more efficient and to strengthen the sales organization for the Japanese market through measures aimed at shrinking the direct sales business, strengthening and restructuring of sales channels involving dealerships, consolidation and elimination of branches of a sales company in Japan, and reassigning Renesas Group sales personnel to its dealerships.

The Company will merge its sales company in Japan, Renesas Electronics Sales Co., Ltd., with Renesas Electronics in order to speed up decision-making and improve response capabilities to customers.

The planned merger is due to take place in October 1, 2013. In addition of supplying customers with kit solutions leveraging the company's core competence MCUs, and incorporating Analog and Power semiconductors or SoCs, the company plans to provide platforms consisting of common software, including IP and OS, that is optimized respectively for each application, thereby contributing to shorter development time, increased cost competitiveness, and higher productivity for customers.

The software development and tool development functions of RMS have been consolidated at RSO (implementation complete). The hardware (circuit) design functions of RMS and RDC will be integrated into a newly established design company. Musashi ES and Kitaitami ES will be merged into a newly established design support company.

The design support functions of the Company's Tamagawa site and Takasaki ES will be consolidated into a newly established design support company.