Fujitsu axes 1,200 UK jobs

 

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By Stuart Turton

Posted on 27 Aug 2009 at 08:10

Fujitsu has announced plans to axe 1,200 jobs in Britain, as it struggles to cope with "lower than anticipated revenues".

The cuts affect around 10% of Fujitsu's UK workforce and will include administrative staff and engineers. The Japanese firm expects the layoffs to be completed by the end of the year.

"Fujitsu has proposed this measure reluctantly," said the statement. "However, action is necessary to ensure that the company remains competitive in the current difficult global economic climate."

The move was condemened by labour union Unite: "These proposed redundancies are wholly unwarranted given the company made £200 million in profit last year. It even paid two directors £1.59 million in compensation for loss of office," says Peter Skyte, Unite national officer for IT and communications.

These proposed redundancies are wholly unwarranted given the company made £200 million in profit last year

"Unite is pressing for detailed information about the reasons for this proposal and the areas affected. We will be doing everything possible to protect the jobs of the workforce," he adds.

The jobs cuts are the latest in a string of shakeups for the firm which earned £2 billion last year, but is anticipating a decline of about 7% for 2009. Back in April, the firm poached Roger Gilbert from EDS to become its new chief executive, and is now integrating the business of German joint-venture partner Siemens, which it purchased for £360 million.

The majority of Fujitsu's revenue comes from Government and private sector outsourcing contracts, which have been thin on the ground in recent months. The company was severely hit last year when it lost a £896 million contract to upgrade the NHS's IT system in the south of England.