Feeds

Fujitsu plans cuts, predicts two more years to recovery

CFO paints gloomy picture

  • alert
  • submit to reddit

New hybrid storage solutions

ComputerWire: IT Industry Intelligence

Fujitsu Ltd is planning job cuts and believes that the market will not recover for another two years. The Tokyo, Japan-based computer giant said the WorldCom scandal and concerns over the US economy, will almost certainly mean further restructuring this year, despite the fact that its profit target remains on course.

Fujitsu chief financial officer Takashi Takaya said in an interview that one target for job cuts and consolidation is the company's US telecommunications equipment business, to which the company is heavily exposed. Also at risk is Fujitsu's domestic hard disk drive operations, with a consolidation of production facilities now under consideration.

The demise of WorldCom has meant that the company will lose approximately $20m in orders, and it believes that the scandal will delay a recovery in the global communication equipment sector. Takaya added: "We have to slim down further in North America so that we can hold on until a recovery, possibly in about two years."

Over the last year Fujitsu, like other Japanese chip and electronics giants took drastic restructuring steps by closing plants and slashing jobs when confronted by the economic downturn. It is likely that the proposed restructuring will include both headcount reductions and cutting facilities.

Regarding the company's earnings performance, Takaya said the company is not thinking of cutting its operational profit target of 100bn yen ($857m), since the weakness in the telecoms equipment market is expected to be offset by strengths in other areas such as semiconductors.

© Computerwire.com. All rights reserved.

The next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.