Feeds

Fujitsu plans cuts, predicts two more years to recovery

CFO paints gloomy picture

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

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.

Internet Security Threat Report 2014

More from The Register

next story
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
prev story

Whitepapers

10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.