Fujitsu to cut 2,100 jobs in Japan

TOKYO: Fujitsu Ltd., Japan's biggest computer maker, said on Thursday it would cut 2,100 jobs at domestic plants that make electronic components and printed circuit boards, as part of an ongoing restructuring programme. A spokeswoman said 2,100 employees at four Fujitsu facilities in Japan had opted for an early retirement package offered to 4,600 workers, while further payroll cuts remained a possibility. "We have said we will be re-examining our overall operations, so we can't rule out that possibility," she said.

Last month, Fujitsu Chief Financial Officer Takashi Takaya said more job cuts were likely in the current business year to next March, although they would not match last year's hefty cut of 22,000, including contract workers. Fujitsu also last month raised its estimated restructuring charges for this year to 60 billion yen ($512 million) from 40 billion yen and said it planned to shift output of printed circuit boards used in computers and telecom gear to Vietnam.

Japan's five chip and electronics conglomerates, including Fujitsu, cut more than 60,000 jobs in the last business year and closed several factories, aiming to slim operations as they confronted a record-breaking semiconductor slump and heated global competition. A worsening of the slump in the telecom equipment sector, which is now expected to drag on for perhaps two more years, has spurred further restructuring.

NEC Corp, Japan's second-biggest chipmaker and its largest manufacturer of personal computers and telecom equipment, said last month it would launch an early retirement programme targeting 4,000 to 5,000 workers aged 45 or older.

Shares in Fujitsu and NEC rose on Thursday in line with a rebound in the broader market. NEC ended 1.87 percent higher at 655 yen, while Fujitsu was up 2.04 percent at 601 yen. The Tokyo Stock Exchange's electrical machinery index gained 1.48 percent.

© Reuters