Renesas has announced an early retirement programme for 7,511 employees.
The company says it will"have little impact on on the Renesas Group's business operations including sales and production."
Renesas has revenues of$10bn and 42,700 employees.
The early retirement programme will reduce the cost of labour at Renesas by an annual Yen54bn($690m).
As a result of the programme,Renesas expects to record a loss of Yen85bn($1.09bn)in the quarter to the end of March 2013.
The extra financial incentives to retire early will be on top of Renesas'normal retirement package.
Those employees wanting it,will get outplacement advice from independent agencies.
The US private equity company KKR had wanted to pay$1.3bn for a controlling interest in Renesas.
However,the Government-controlled Innovation Network Corp of Japan is in discussions with Japanese companies,including Toyota and Panasonic,to buy a majority stake in Renesas to block the KKR bid.
Renesas has negotiated a$2.06bn syndicated loan from the Japanese banks and a further$1.24bn of aid from shareholders Hitachi,NEC and Mitsubishi as well as banks.
The modus operandi of private equity companies is mass sackings on minimal pay-off terms and cost-cutting until the numbers look profitable.When KKR sacked thousands of NXP's employees after acquiring it in 2006,the Dutch government had to appeal to the EU for hardship money for the sacked workers.
Renesas appear to be taking the pain of the job losses themselves rather than letting Americans do it,and so Renesas will reap the rewards of profitability.
