Renesas told a press conference in Tokyo yesterday that it will offer 5000 workers financial incentives to leave the company or take early retirement.
The headcount reduction will save the company$539m a year.
It is reported that the company may sell or close up to ten of its 18 domestic factories.
The 5000 number is much less than the numbers which had been reported previously.
The offer will be made to employees between September 18th and 26th and those which accept it will leave by the end of October.
The company said that it's three major shareholders,Hitachi,Mitsubishi and NEC,which hold 90%of the shares,had agreed to the arrangement and they and Renesas'bankers were talking were talking about providing assistance.
Renesas had 42,800 employees at the end of March,estimates Bloomberg.
