Fujitsu Services to cut 1,200 UK jobs

Fujitsu Services is to axe around 10% of its UK workforce as part of a cost cutting drive to counter a shortfall in sales.

Fujitsu Services is to axe around 10% of its UK workforce as part of a cost cutting drive to counter a shortfall in sales.

This means that 1,200 employees at the integrator in various HQ functions including sales and marketing and finance have been placed at risk of redundancy.

"Fujitsu has proposed this measure reluctantly," the firm said this morning, adding it was due to "lower than expected revenues."

"Action is necessary to ensure that the company remains competitive in the current difficult global economic climate and is in a position for future growth when the economy starts to recover," stated the firm.

The integrator said it had tried to avoid job losses by implementing a company-wide pay freeze, reducing contractors and temporary workers, a retraining programme and tight control of recruitment.

Representatives from each of the affected functions are due to be elected on 10 September and after that a 90 day consultation period will kick off, a spokesman at the firm told Microscope.

The cuts will not be made across the board but in areas "where there is over capacity" such as sales and marketing and finance he added.

The 12,500 UK staff at Fujitsu Services also includes 800 employees from Fujitsu Technology Solutions, previously Fujitsu Siemens that were integrated into the business earlier this year.

It had annual revenues of around £2bn in the fiscal year ended 31 March 2009, of which £1.64bn pertained to services.

The reductions are expected to be completed by the end of 2009.

Roger Gilbert, Fujitsu' UK CEO - who took over from previous incumbent Dave Courtley - revealed to analyst Richard Holway at Tech Market View today that it was forecasting a 7% decline in revenues.

It appears the downturn has hit both the public and private sector businesses and the order book is looking a little disappointing in the current fiscal year, as new customers are harder to find and existing ones look for more aggressive contractual Ts&Cs.

The upshot is that Fujitsu will inevitably offshore more functions, Gilbert admitted to Tech Market Views.

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