Fujitsu cuts 1,700 jobs

Oct. 31, 2002 – Tokyo, Japan – Fujitsu Ltd. will trim its work force at its three US subsidiaries by 10% as part of major restructuring efforts, which include halting the marketing of transmission devices for long-distance communications and substantially scaling down information systems-building services for corporate clients in North America, company sources said.

The payroll cut means that a plan previously announced by Fujitsu to slash 1,700 jobs overseas will be carried out entirely in the US, the sources revealed.

The Tokyo-based manufacturer of data-processing and communications equipment plans to cut 500 jobs at Fujitsu Network Communications Inc., which makes and sells transmission systems in Texas, reported the Nihon Keizai Shimubn. It will also cut 800 jobs at Fujitsu Consulting, a New Jersey-based systems builder, and 400 jobs at Fujitsu IT Holdings Inc., a California-based holding company.

The staff reductions will be implemented by the end of this year.

For US operations dealing with communications equipment, Fujitsu intends to withdraw from sales of transmission devices used for long-distance communications, and will instead focus on equipment used for local communications in urban areas.

In addition, the Texas plant will end local parts procurement and shift to knockdown assembly of parts imported from Japan to cut costs.

The latest move follows steps carried out earlier in the current business year — the closure of an Oregon plant manufacturing flash memory chips and the liquidation of Fujitsu Business Communication Systems, a California unit making and selling switchers.


Easily post a comment below using your Linkedin, Twitter, Google or Facebook account. Comments won't automatically be posted to your social media accounts unless you select to share.