Fujitsu to axe 1,200 UK jobs
Fujitsu Ltd., Japan's biggest computer-services provider, has announced to axe as many as 12,500 jobs in its British IT services unit, signifying the impact of economic downturn on company’s business.
Headquartered in Tokyo, Fujitsu reported a loss of ¥29.2 billion (equivalent to £190 million) in the quarter to June due to falling sales worldwide.
Speaking on the topic, Fujitsu said, "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."
On the other side, UK’s leading union, Unite has condemned company’s recent move and asked for comprehensive reasons for the proposal.
Under the cost-cutting measures, Fujitsu has resorted to pay freezing, slashing the number of contractors plus temporary workers.
It may be noted here that Fujitsu UK had reported annual revenues worth over £2 billion in 2008.
Last year Fujitsu lost a multibillion pound renovation project of the NHS computer system, which was later picked-up by BT.
In the quarter to June, rate of joblessness in UK soared to 7.8 per cent, highest level in the last 13 years.