Renesas Electronic Corp., the Japanese chipmaker whose profits have been dwindling annually since its start in 2010, will lay off over 5,000 employees as a way to cut financial losses. The company's financial slump is due in large part to decreased TV demand and chip prices.

Employees will be offered early retirements as incentives to leave the corporation. This could potentially save the company 43 billion yen ($539 million) annually.  

Also in an effort to trim losses, the company plans on closing or selling up to 10 of its 18 domestic plants within three years.

In the past, Renesas planned job cuts for up to 14,000 workers in attempts at restructuring.  Also, in 2010, the company announced that it would buyout 5,000 workers.

Prior to the company's announcements to cut back on costs, Renesas shares jumped the most in over two weeks in Tokyo.

"We can't see the whole picture regarding revival yet," Takeo Miyamoto, an analyst at Deutsche Bank AG, told Bloomberg. "The impact of the proposal will change depending on how long the company plans to keep implementing the proposals."

Renesas, which has close to 42,800 employees, will present the buyout offer to workers between September 18 and September 26. Those who agree to the buyout terms will be dismissed by October 31.