Tokyo, Japan – NEC Corp. will cut bonuses of 12,000 managers by 40% in FY02, as it is likely to post a group operating loss of 57 billion yen in the current term through March due to poor semiconductor and communications business, company sources said.

The loss will be the first of its kind for the company, reported the Nihon Keizai Shimbun.

The company will also cut managers’ bonuses at group firms in a drive to cut groupwide personnel costs by about 35 billion yen next fiscal year.

The reductions will shrink the salaries of parent-company managers by an average of 15% in FY02.

Pay for such executives as President Koji Nishigaki and other directors has started being cut from the current fiscal year, and a further 15% pay reduction is due to be implemented for the president and the chairman. These measures are certain to reduce the current-term salaries of the two top management staff by more than 50% from a year earlier.