MANHASSET, N.Y. NEC LCD Technologies is consolidating two fabs and cutting its staff by 50 percent.
NEC said it will close its Kagoshima plant at the end of December 2009 and integrate production into its Akita plant in order to eliminate overlapping functions and operations.
Staffing will be reduced from 1,190 to approximately 600 by the end of March 2010, achieved primarily through a voluntary retirement program.
The Kanagawa headquarters operations will also be transferred and consolidated within the Akita plant.
The company said there will be no supply disruptions for existing products due to the plant consolidation. It will continue new product and technology development for 3-D and electronic paper.
"Our worldwide business strategy remains unchanged and with the current restructuring we expect to further strengthen our competitive position in the market," Toshihiko Ueno, president of NEC LCD Technologies, Ltd., said in a statement.
NEC LCD Technologies said losses associated with an unfavorable foreign exchange environment, and no short-term economic recovery in sight, forced it to reduce fixed costs to achieve higher efficiencies.
NEC LCD provides active-matrix LCD modules for the industrial and high-end monitor markets.