TOKYO -- Japanese electronics giant Fujitsu will eliminate 400-500 jobs in Germany, to follow the 2,200 job cuts in the U.K. and Finland announced recently, as the company aims to increase competitiveness in Europe by trimming costs.
A total of 2,700 jobs will be eliminated in Europe as a result. German subsidiary Fujitsu Technology Solutions, which employs around 12,000 workers, is set to make reductions with a final decision coming once negotiations with workers are concluded. Cuts will be mainly in the information technology system operations and development services.
Fujitsu is using the restructuring to shift resources toward growing fields such as the internet of things, which connects various devices through the cloud. The company plans to maintain the scale of its businesses while lowering costs by transferring software development and customer service segments to countries with cheaper labor. Fujitsu aims to lift group profitability by boosting competitiveness in its European business, which logs 20% of total sales.
Fujitsu Technology Solutions' desktop computer development and manufacturing segments will be reviewed later, after discussions with Lenovo, which plans to restructure Fujitsu's computer business under its wing.
Fujitsu expected expenses of 45 billion yen ($432 million) for structural reforms in its fiscal 2016 earnings forecast, with the European streamlining likely covered by these outlays.