Concern as Fujitsu makes job cuts

IT systems and services company Fujitsu Services is planning to cut 1,200 jobs or 10% of its UK workforce by the end of the year.

The proposed move was blamed on “lower than anticipated revenues”.

The firm has more than 750 staff at three offices at Central Park, east Manchester, engaged on a outsourced public sector contract. Details of where the jobs would be lost were not provided.

In a statement the company said: “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.”

The company said it had already embarked on a number of measures to cut costs to avoid job losses, including a company wide pay freeze, a reduction in the number of contractors and temporary workers, a re-training programme and tight control of recruitment.

Fujitsu, whose UK business is worth £2bn a year, said the proposed reductions “are expected to be complete by the end of 2009”

“All affected employees will be offered guidance and support. A process of consultation with elected employee representatives is being established,” the company added.

Angie Robinson, chief executive of Greater Manchester Chamber, said Fujitsu’s announcement was “worrying news”.

“We hope there will be no impact on the Manchester workforce, or if there is that it will be minimal and that anyone made redundant will get the support they need to find other jobs.

“These are high-quality jobs that are badly needed in this part of the world.”