March 13, 2024 /SemiMedia/ -- According to reports, Renesas Electronics decided on March 11 to postpone the regular salary increase in April every year for six months until October. In addition, as the recovery of the semiconductor market slows down and uncertainty increases, the company has laid off about 200 to 300 people starting in November 2023 in order to reduce labor costs.

The report pointed out that the company proposed to postpone regular salary increases and reached an agreement with the union in early March. The implementation date will be postponed company-wide, and the cost savings will be used for future investments. In addition, the layoffs are being laid off regardless of region or position, with more than half of the employees overseas.

Renesas Electronics explained that the postponement of the salary increase was due to weak semiconductor market conditions and careful consideration of future investments and business priorities. Regarding the layoffs, the Renesas Public Relations Department said, "We will reduce a limited number of personnel in Japan and overseas. We respect the dignity of our employees to the greatest extent and operate in accordance with the procedures that each country must follow."