NEC announces major business structure reforms

NEC Corporation announced business structure reforms for strengthening the execution of business strategies in support of achieving the Mid-term Management Plan 2025.
NEC Japan
Japan-based NEC did not indicate about any possible job reduction.

NEC has been operating its business without significantly changing its basic organizational structure since the introduction of the business division system in the 1960s.

In FY2022, NEC will reduce the number of organizations by roughly 2/3, from approximately 150 to about 50, by grouping the current division-level organizations into units that are related to markets, products, services and functions. The number of levels from the CEO to staff will be reduced from the current 8 levels to 6 levels.

NEC will strengthen the authority and responsibilities of leaders, including department heads, dynamic resource allocation in response to changes in the market. NEC will promote the selection of youthful personnel for positions of leadership.

The new organization will be based on a hybrid structure between a hierarchy model and a project model. For professional positions, from the executive class to staff level, NEC will assign titles according to the level of a position’s specialization, and facilitate the transition to job-based human resources management.

NEC will unify digital-related products, services and technologies, including the network domain, as well as strategic consulting, engineering and field marketing functions, into the Digital Business Platform Unit.

NEC will introduce job-type human resource management for all employees in FY2023. NEC will work on reforms for promoting the optimal organization and system for achieving the Mid-term Management Plan 2025, while taking measures to ensure global differentiation and sustainable strengthening of competitiveness.

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