Fujitsu to axe 16,400 jobs worldwide

Fujitsu is to cut 16,400 jobs worldwide, about 10 per cent of its workforce, to cope with a slump in demand for technology.

Fujitsu is to cut 16,400 jobs worldwide, about 10 per cent of its workforce, to cope with a slump in demand for technology.

Around 5,000 jobs are expected to go in Japan and 11,400 overseas. The company employs 1,000 people in Northern Ireland and has two ICL subsidiary operations in Ireland, but it is not known how these will be affected.

The Japanese electronics manufacturer, which has a global workforce of about 180,000, is restructuring to cope with the downturn in demand.

Japanese newspapers Nihon Keizaiand Yomiurihave reported it will close some production lines and merge affiliates as part of plans to be unveiled today.

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The dailies say most of the lay-offs will affect Fujitsu's overseas units in North America and south east Asia.

Like its Japanese competitors, Fujitsu has been hard hit by the global downturn in sales of memory chips and other electronics components. Rival NEC plans to axe 4,000 jobs by next March in a similar costcutting move.

Last month, Fujitsu posted a first-quarter group loss of Yen 55.4 billion (£318.8 million sterling ), more than four times the Yen 13.3 billion (£76.5 million) it lost a year ago.

The Nihon Keizaisays Fujitsu is negotiating to sell a plant at Gresham, Oregon, which employs 900 workers, to US chipmaker Advanced Micro Devices.

PA