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Fujitsu cuts 1,200 UK jobs after revenue mauling

Even though EMEA sales grew 38% in Q1...

Fujitsu Services is shedding roughly 10 per cent of its UK workforce with the announcement that 1,200 jobs will go, following less than pretty revenues.

In June the Japanese tech firm reported an 11 per cent drop in first quarter revenue, down to ¥1.04tn (£6.7bn). It pulled in a net loss of ¥29bn (£186m) during Q1.

However, despite the firm's overall EMEA sales growing a healthy 38 per cent to ¥238bn (£1.5bn) during the quarter, Fujitsu Services is letting the axe fall on its staff in Blighty, where it currently employs 12,500 people.

"Fujitsu has proposed this measure reluctantly," said the IT services outfit in a statement.

"However action is necessary to ensure that the company remains competitive in the current difficult global economic climate and is in a solid position for future growth when the economy starts to recover."

The company said that "prudent measures" to keep costs down at its UK operations hadn't been enough to prevent job cuts at Fujitsu, which are expected to conclude at the end of 2009.

Employees were told in an internal memo, penned by the firm's UK and Ireland CEO Roger Gilbert and seen by The Register, that Fujitsu UK currently has "excess capability in a number of areas of the business".

"We will be entering into a consultation process with a number of very specific areas of the business where the Company proposes to reduce headcount," he said.

"This activity will be focused only on these specific areas and if you work in one of these you will receive more details about how you may be affected within the next 48 hours." ®

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