NTT in financial crisis

NEWS Japanese telecoms behemoth NTT has admitted it is in a dire financial situation, with predicted profits for this financial year now being slashed by 30 per cent. The firm is blaming its woes on increased competition in the market-place leading to widespread price-cutting. The news was quickly followed by an announcement that the company plans to move 100,000 employees from its core business, and place them within subsidiary firms. NTT is also expected to cut spending, particularly in R&D. According to reports in the Financial Times, some assets will be sold off, although there are currently no plans to divest its 64 per cent-owned mobile phone subsidiary NTT DoCoMo.