NEC may have decided to stop selling computers in Europe, the Middle East and Africa as part of a concerted effort to staunch the financial haemorrhaging that is turning the company upside down.

Just a week after insider news that NEC is talking to Toshiba about working together on chip production to save costs, Japanese media reports say the company is withdrawing from selling computers in much of the world.

French job losses

The firm, which is the PC-sales market leader in its home territory of Japan, will close its French division that produces business PCs and switch to server production instead. It stopped selling consumer PCs in Europe in 2006.

Currently, desktop and laptop PCs bring NEC 13 per cent of its global business, a figure that's sure to shrink after the fall of the latest corporate axe.