NEC’s spokesman announced on Saturday that the company will pull out from the PC markets overseas, as it apparently isn’t lucrative enough to go on. This comes a month after the company announced its withdrawal from its PC business in Europe, Africa and Middle East.
NEC still holds its place as Japan’s top PC giant, but the company said it plans to post a US$2.96 billion loss for this business year. In turn, the company is accelerating restructuring, meaning pulling out from unprofitable markets and cutting more than 20,000 jobs worldwide.
Due to fierce competition in Europe, NEC sold its retail PC business in Europe in 2006, and since only one sixth of its annual global sales is outside of Japan, this decision does not come as a surprise.