Fujitsu is preparing to make about 500 people with specialist IT and general project skills redundant.
The job losses follow Fujitsu's decision to quit as local service provider for the south of England under the NHS's National Programme for IT [NPfIT].
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The news follows Fujitsu's warning of 700 potential redunancies in June.
Redunancies are expected in software and solution development, solution delivery, business consulting, service delivery management and project management. About 40 doctors and nurses and others with clinical expertise are also expected to lose their jobs.
Staff were put on 90 days' notice of possible redundancy on 20 June. Some have been redeployed within Fujitsu. Others were hoping that one or both of the other two NPfIT local service providers, CSC or BT, would take over
Fujitsu's contract is to supply the Care Records Service to dozens of trusts in the south of England.
BT is expected to take over eight Fujitsu sites that have gone live with the Cerner "Millennium" Care Records Service. But senior executives working for the NPfIT have indicated that there will be no decisions before the end of August on any replacment for Fujitsu for most NHS trusts in the South of England.
The uncertainty means that Fujitsu is expected to issue firm redundancy notices to up to 500 staff by the end of August. The formal 90-day consultation period of potential redundancy expires on 18 September 2008.