NEC to cut 4,000 jobs worldwide

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Tokyo--In an effort to battle the high-tech slump, NEC Corp., the world's third-largest computer chip maker, said on Tuesday that it would cut 4,000 jobs globally, or 2.5% of its work force. At the same time, NEC said it would stop production of dynamic random access memory, the most volatile segment of the chip market, by 2004. NEC said it planned to transfer this business to Elpida, the joint venture it created with Hitachi in 1999 to salvage its position in the "D-ram" market. The staff reductions include cutting capacity in half at a Scottish chip making plant and slashing more than 600 of the facility's 1,600 jobs, while freezing plans to raise chip output at a joint venture in Shanghai, China. NEC also said it would sell its laser printer operations and contract out to a Taiwanese firm the production of some of the liquid crystal displays it makes for personal computer monitors. Among the 4,000 job cuts, only 1,800 are group employees; the remainder is contract workers hired to supplement the company during busy times.
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