LONDON (AP) -- Japanese computer maker Fujitsu Ltd. said Wednesday it plans to ax 1,200 jobs in its British IT services unit because of lower than expected revenues.
Fujitsu, which employs some 12,500 workers in Britain, said the cuts were necessary to ensure the company remained competitive in the current downturn and that it was "in a solid position for future growth when the economy starts to recover."
The positions will go from its IT services arm, which employs staff on IT and outsourcing contracts for private firms, councils and the government.
The company has been hit by companies cutting back on IT spending because of the recession.
"To date the company has taken a number of prudent measures to keep its cost base down and avoid job losses, including a companywide pay freeze, a reduction in the number of contractors and temporary workers, a retraining program and tight control of recruitment," the company said. "In addition, strict controls have been applied to operational and capital expenditure."
The proposed job cuts are expected to be completed by the end of the year following a statutory 90-day consultation with employees.