Japanese electronic firm Fujitsu has announced 1200 job cuts within its British IT services unit. Fujitsu have attributed these redundancies to reduced client spending and have deemed them “reluctant” but “necessary”.
Analysts had predicted the redundancies as Fujitsu had been hit rather hard by the economic downturn. In a bid to avoid paying off permanent staff, Fujitsu had previously reduced its contractor pay rates by 15% as a ‘take it or leave it’ ultimatum. They had also frozen permanent staff salaries and curtailed pensions. They had then reduced the number of contractors that they used.
Fujitsu released the following statement regarding the new redundancies, “This measure [a reduction of 1200 jobs] is being proposed because of lower than anticipated revenues.
Fujitsu has proposed this measure reluctantly. 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”
However, the Unite union has slammed the announcement of redundancies at Fujitsu, calling them “wholly unwarranted” in light of the company’s recent profits.
Unite national officer for IT and communications, Peter Skyte, commented: “These proposed redundancies amounting to 10% of its UK workforce are wholly unwarranted given that the company made £200m profit last year. It even paid two directors £1.59m in compensation for loss of office. Unite is pressing for detailed information about the reasons for this proposal and the areas affected. We will be doing everything possible to protect the jobs of the workforce.”