NTT Corporation has decided to combine its 4 operating companies – NTT Communications, Dimension Data, NTT DATA and NTT Security.
NTT, Inc. will be the name of the new holding company under NTT Corporation by the third quarter of the fiscal year ending March 31, 2019.
Jun Sawada, current CEO of NTT Corporation, will also serve as its CEO. Operating revenue of NTT, Inc. is approximately $38 billion with $20 billion coming from outside Japan for the fiscal year ending March 31, 2018.
The company did not reveal any plan for job cut as part of the plan for consolidating its businesses under one company. NTT, Inc. will have approximately 163,000 employees globally.
NTT will consider integrating these businesses – except NTT DATA – into two businesses by the second quarter of the fiscal year ending March 31, 2020. One business will manage global business, while the other will cater for domestic business in Japan.
NTT said it will have an innovation fund called NTT Venture Capital with a fund size of up to $500 million for the purpose of making investment in high-growth areas such as digital technology.