Fujitsu Services has announced a proposal to make 1,200 people redundant in the UK because of "lower than anticipated revenues".
The IT company says it has proposed the measure "reluctantly" but, "It 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."
Fujitsu Services says it will consult with employees and unions to on how to achieve the reduction in numbers. Fujitsu employs 12,500 people in the UK and generates annual revenue of £2bn.
The redundancies are likely to be completed by the end of 2009. Fujitsu said in a statement, "The company has taken a number of prudent measures to keep its cost base down and avoid job losses, including a company wide pay freeze, a reduction in the number of contractors and temporary workers, a retraining programme and tight control of recruitment. In addition strict controls have been applied to operational and capital expenditure."