It's not often you hear analysts say cost cutting has gone far enough, but that's what a research report from Macquarie said about NEC Electronics' restructuring plans for the next 12 months. "Accelerated cost reductions are a positive but not a sustainable driver for recovery...it is difficult to sustain because it demands heavy sacrifices from employees in the form of large cuts to wages and bonuses and other severe economies. We believe NEC Electronics cannot maintain the annual cuts (in wages) without jeopardising long-term competitiveness and employee morale," it said. The Macquarie report, published in May, followed the management's proposal to cut ¥90 billion ($950 million) of fixed costs in the current financial year, up from an original plan to trim costs by ¥60 billion. Both NEC Electronics and Hitachi have been prominent in announcing turn-around plans.