Fujitsu's UK job cuts not due to Brexit

Japanese electronics giant Fujitsu says Brexit is not the reason for its decision to cut 1800 jobs throughout Britain.

Japanese electronics giant Fujitsu Ltd will cut 1800 jobs in Britain as part of a "transformation programme" but says the move is not linked to the country's vote to leave the European Union.

Japanese companies had warned in the run-up to the June referendum that a vote to leave could damage jobs and prospects in Britain.

But Fujitsu said in a statement on Tuesday that the job cuts, which amount to 18 per cent of its UK workforce, were part of a transformation programme across its Europe, Middle East, India and Africa unit.

"These changes are in no way linked to the decision by the UK to leave the EU," it said.

"Fujitsu is committed to the UK and is confident in the continued growth of the UK economy."

The job cuts, which the company said would make it more competitive, would affect Fujitsu's major UK sites including Belfast, Bracknell, Crewe, Manchester, Stevenage, Wakefield and Warrington.

The Japanese government published a 15-page report in September warning of the impact Brexit could have on its financial institutions and companies headquartered in Britain.

The report noted nearly half of Japan's investment into the EU in 2015 flowed to Britain, and requested clarity as to how negotiations with the EU would unfold.

"What Japanese businesses in Europe most wish to avoid is the situation in which they are unable to discern clearly the way the Brexit negotiations are going, only grasping the whole picture at the last minute," the report said.

The CEO of Japanese automaker Nissan asked Britain last month to promise compensation for any tax barriers resulting from the decision to leave the EU before it invested further in its plant in Sunderland, northeast England.

The British government announced last week it would trigger the formal legal process of exiting the EU by the end of March 2017, giving some further clarity to businesses affected by the vote.

But Prime Minister Theresa May has said she would not reveal her hand ahead of time in negotiations with European counterparts.


Share

2 min read

Published

Source: AAP



Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world