EmergingTech from Japan

Around 1000 Sanyo semiconductor employees to quit

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988 people have applied for a voluntary retirement plan that Sanyo Electric Co., Ltd. offered to regular employees working at its semiconductor division and subsidiaries in Japan, double the number the company had expected.

The employees opting for early retirement will resign by the end of this month, reducing the workforce of Sanyo's semiconductor operations by about 17% to 5,000 employees.

Sanyo's retirement-related costs will balloon to 8.5 billion yen (US$85 million*) for the current fiscal year ending this month, more than the 6 billion yen in the company's original plan. The additional costs are expected to put the company in the red, since Sanyo had projected that it would break even for the current fiscal year.

* Original figures are in Japanese yen. The exchange rate is roughly US$1=100 yen.

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