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Fujitsu unit to cut 1,200 UK jobs | Fujitsu unit to cut 1,200 UK jobs |
(about 2 hours later) | |
The IT services unit of electronics giant Fujitsu has said it will cut up to 1,200 jobs in the UK because of the economic downturn. | The IT services unit of electronics giant Fujitsu has said it will cut up to 1,200 jobs in the UK because of the economic downturn. |
The job cuts will be completed by the end of the year, the company said. | The job cuts will be completed by the end of the year, the company said. |
"Action is necessary to ensure that the company remains competitive in the current difficult global economic climate," it added. | "Action is necessary to ensure that the company remains competitive in the current difficult global economic climate," it added. |
Fujitsu said it currently employs 12,500 people in the UK. It previously implemented a company-wide pay freeze. | Fujitsu said it currently employs 12,500 people in the UK. It previously implemented a company-wide pay freeze. |
'Huge blow' | |
Fujitsu joins other IT companies, such as IBM and Capgemini, in cutting jobs in the UK. | |
The Public and Commercial Services Union (PCS) reacted angrily to the news. | |
"This is a huge blow to people who provide support to essential public services including driving licences, taxes and defence," said Mark Serwotka, the PCS general secretary. | |
"Services to the hard-working taxpayer are bound to suffer as highly skilled IT professionals are thrown on to the dole queue. | |
"Over the coming days and weeks we will be campaigning against the job losses and against compulsory redundancies," he said. | |
Fujitsu said it had to cut jobs because of lower-than-expected revenues in the UK. | |
It has been hit by firms cutting back on IT spending because of the recession. | |
In May, the UK unit said it was planning to close its final-salary pension scheme to existing staff in the UK. | In May, the UK unit said it was planning to close its final-salary pension scheme to existing staff in the UK. |
The Fujitsu group as a whole had revenues of 4.6tn yen ($47bn) for the financial year to March. | |
It recently revised upwards its profit forecast for 2009. | |
Fujitsu now expects net income of 15bn yen for the first six months of the year, up from the 55bn yen loss it said it expected in July. | Fujitsu now expects net income of 15bn yen for the first six months of the year, up from the 55bn yen loss it said it expected in July. |