Ailing Japanese chipmaker Renesas said on Wednesday that it will post a 85 billion yen ($1.1 billion) extraordinary loss in the July-September quarter after a larger-than-expected number of employees volunteered for its redundancy scheme.

Renesas said about 7,500 employees volunteered to resign with compensation. The firm had aimed to attract about 5,000 workers for the scheme.

The implementation of the scheme will reduce costs by 54 billion yen per year, Renesas said.

($1 = 78.04 Japanese yen)

(Reporting by Shinichi Saoshiro; Editing by Edwina Gibbs)