Fujitsu plans on sacking thousands
Fujitsu has said its is going to lose ¥220 billion ($1.78 billion) for the year and axe thousands of jobs.
But it is planning a major restructure and has said it's going to take a ¥280 billion ($2.26 billion) special loss for the first half of the business year to next March to pay for it.
Fujitsu has reported a loss of ¥55.4 billion ($450 million) for its Q1 ended June 30
The company is scaling back its flash memory plans as sales are stalling.
First quarter consolidated sales of services and software were 374.9 billion yen ($3 billion), an increase of 4 per cent from a year earlier. Performance was dragged down by weaker sales of services in Europe and North America as companies there restrained spending on IT.
The company’s information processing division reported consolidated sales of 325.3 billion yen ($2.6 billion), an increase of 2 per cent from the first quarter of last fiscal year. Although sales in Japan of PCs to consumers declined, business was boosted by continuing growth in sales of UNIX servers for businesses and higher sales of other large-scale enterprise servers. Overseas sales decreased, as sales of small form factor magnetic disk drives for desktop PCs declined, and cutbacks in IT spending led to sluggish demand for servers, particularly in the US. ®
Sponsored: The Nuts and Bolts of Ransomware in 2016