Page last updated at 13:21 GMT, Wednesday, 26 August 2009 14:21 UK

Fujitsu unit to cut 1,200 UK jobs

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Fujitsu employs 12,500 people in the UK and has annual revenues of 2bn

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.

"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.

'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.

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.



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