According to the Nikkei newspaper, the Japanese chip manufacturer Renesas Electronics will cut hundreds of jobs this year due to weak demand affecting chip sales performance.

Reports indicate that Renesas has notified employees of plans to reduce less than 5% of its approximately 21,000 global workforce, while also postponing the salary increase plan originally scheduled to start in spring.

A Renesas spokesman stated that the measures are aimed at strengthening the company's structure to support long-term development and achieve the company's growth strategy, considering the ongoing weak market.

Renesas expects a 9% decline in fiscal year 2024 revenue to about 1.33 trillion yen (approximately 8.4 billion dollars), as demand weakens, with factory utilization dropping to about 30% in the October to December quarter last year, down from about 40% in July to September, and the large-scale production plan for the new factory in Yamanashi Prefecture originally set for early this year will also be postponed.