TOKYO-NEC Corp. announced a corporate restructuring to speed up growth and said it will refocus its business on value-added solutions for the Internet. This follows NEC’s Feb. 19 announcement of its intention to restructure.
As part of its reorganization, NEC said it will focus on its mobile communications, digital broadcasting and home-networking operations as the basis for the next-generation Internet.
In addition, NEC expects to restructure its operations in April 2000 into three businesses: NEC Networks, to provide Internet solutions to operators; NEC Solutions, to provide Internet solutions to corporations, individuals and the government/public sector; and NEC Electron Devices, to provide electron device solutions for the Internet industry.
NEC said is will transfer much of the decision making to these new in-house companies; implement a redistribution of capital among these companies and set targets for return on capital; and heighten attention to cash-flow management.
About 900 of the current headquarters staff of 2,200 will be transferred to the new in-house companies. The headquarters staff then will be reduced to 300 people.
Intel agreement
In related news, NEC announced a global partnership with Intel Corp. to enhance each company’s Internet-related businesses.
The two companies said they are collaborating to bring together the capabilities of NEC’s BIGLOBE Internet services with Intel online services to offer global Internet solutions to BIGLOBE customers.
