Report: Fujitsu to restructure, cut 15,000 jobs

Fujitsu will announce later Monday its plans for a wide restructuring of its business after it previously said expects to a report group net loss of 220 billion yen (US$1.8 billion) for the current financial year. Details will be unveiled at a 2pm news conference.

Company officials were keeping tight-lipped on the details of the announcement Monday morning however local media were reporting what they said were some of the details. The restructuring will include the laying off of around 15,000 workers, according to a report in the Sunday morning edition of the Nihon Keizai Shimbun, while the Asahi Shimbun reported the number could be as high at 16,000.

The job cuts, which represent around 10 percent of the electronics maker's global workforce, will mostly come in North America and Asia, said the Nikkei. Around 3,000 jobs are expected to be cut in Japan as a result of the plan which will see the company consolidate production of computers and telecommunication equipment, it said.

The company will announce an end to overseas manufacturing of semiconductors and data storage units for personal computers and switch U.S. production of telecommunication switches to fiber-optic products, according to the newspaper. The company will also announce plans to combine domestic semiconductor production lines, it said.

Several thousand production line workers will also be transferred to software and services divisions, said the newspaper. These divisions provided most of the few bright spots in Fujitsu's first quarter earnings, announced in late July.

Some elements of the restructuring have already been announced. Earlier this month the company announced plans to end 3.5-inch IDE hard disk manufacturing in favor of more profitable 2.5-inch drives.

Fujitsu officials expect to report a net loss for the current year of 220 billion yen, against a net profit of 8.5 billion yen last year. Net sales are expected to slip from last year's 5.5 trillion yen to 5.4 trillion yen this year.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

PC World
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?