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Simplified manufacturing organization to boost Renesas’ profits

Business news |
By eeNews Europe

The company sets a two-digit operating profit ratio as its target for the fiscal year ending March 31, 2017. By simplifying its manufacturing operations drastically, the company’s key goals are to boost production efficiency, build a flexible manufacturing system to respond to rapid market changes, and maintain in-house plants with advanced technologies.

This calls for consolidation of the semiconductor manufacturing business at the front-end and back-end manufacturing sites, with Renesas Electronics and its subsidiaries in Japan being the affected parties. Comparing the company’s structure before and after the planned reorganization, it looks very much like some overhead will be cut, trimming on a fair number of jobs.

 

Renesas’ structure before the reorganization of its Japanese manufacturing operation

 

The structure after its reorganization.

This would go in line with the company’s earlier announcement in January that it will be cutting around 25% of its Japan-based workforce, a total of around 5,400 jobs, as it tries to remain competitive.

The simplified organization is also expected to speed up decision-making while ensuring organization uniformity and manufacturing optimization.


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