NEC is to withdraw from the European enterprise PC market later this year in an attempt to stem losses, Japan's Nikkei newspaper reported on Friday.

The company will end PC production at its NEC Computer SAS subsidiary in France then reduce operations at the factory and switch to server-related items, the newspaper said quoting "company sources." NEC has already started negotiations with the unit's 420 staff, according to the report.

The move will mean a pull-back from the entire EMEA region and reduce NEC's PC business to only Japan, the newspaper said.

NEC declined to comment on the report.

Last week NEC sharply revised down its financial outlook for the current fiscal year and said it plans to cut 20,000 workers worldwide. Around 60 percent of the layoffs will be outside Japan.

In the year to the end of March it expects net losses of ¥290(£2.2 billion against a previously anticipated profit of ¥15 billion (£110m).