Fujitsu announces structural reforms to scale up profit margins
As part of the reform the IT giant will be closing its European headquarters in Augsburg as it looks to cut costs and focus operations in Japan.
IT major Fujitsu has announced that it will be undergoing major structural reforms in a bid to scale up its profit margins. Fujitsu announced it was shutting the Augsburg facility, affecting around 1,800 workers, by September 2020 to centralise all of its manufacturing, sourcing and research and development in Japan.
At the recently held Fujitsu Forum 2018 in Munich, Fujistsu Presidnet Tatsuya Tanaka confirmed the development.
“I want a Fujitsu that remains a trusted business partner to our customers. Fujitsu strategy is the same as it was last year and we are accelerating our journey towards becoming a services company. We will be much more efficient if we offer consolidated manufacturing services from only one area - that is Japan”, said Tanaka, while hinting at the scaling back of European operations.
Tokyo-headquartered Fujitsu’s revenues for the first half ending September 30, 2018 declined more than 4 per cent . For the second quarter ending September 30, Fujitsu said revenue declined 22 per cent at Ubiquitous Solutions, its PC and smartphone unit, to $1.1bn.
It must be mentioned that in Europe, Fujitsu has nearly 5,000 employees in Germany and 300 more in Austria and Switzerland.
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