Technology giant Fujitsu to cut 1,200 UK jobs amid falling sales
Japanese electronics maker, Technology giant, Fujitsu Ltd., which recently posted a quarterly loss, planned to cut up to 1,200 jobs or 10% of its UK workforce in Britain by the end of 2009.
The IT systems and services company, 12,500 workers in the UK and generates annual revenue of £2bn.
Last month, the Japanese technology giant reported a 11% revenue decline for the first financial quarter of the year, down to ¥1.04 trillion (£6.7 billion), and a net loss for the quarter of ¥29 billion (£186 million). However, the company’s overall EMEA revenues grew 38% to ¥238 billion (£1.5 billion) during the quarter.
In a statement, the Japanese company said that “action is necessary to ensure that the company remains competitive in the current difficult global economic climate”.
Over one thousand employees at the firm’s Services arm are to be given a statutory 90-day consultation, after Fujitsu revealed that other cost-cutting measures have proved to be insufficient.
“To date the company has taken a number of prudent measures to keep its cost base down and avoid job losses, including a company-wide pay freeze, a reduction in the number of contractors and temporary workers, a re-training programme and tight control of recruitment. In addition, strict controls have been applied to operational and capital expenditure,” the company said.
Fujitsu employs over 175,000 employees worldwide, with an estimated 12,500 said to be UK workers. The firm states the decision to make job cuts was made “reluctantly”, adding that affected employees will be offered guidance and support.