Japan's FDK Corp to cut 4,800 jobs

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Japan's FDK Corp to cut 4,800 jobs

FDK Corp, an affiliate of Japanese electronics firm Fujitsu Ltd, said on Friday it will cut 4,800 jobs or 40 per cent of its workforce at home and abroad to cope with a steep business downturn.

The electronic component and battery maker will suspend production at one of its three plants in Japan, a statement said.

FDK revised downward its group earnings projections for the year to March as the global economic downturn sapped demand for its parts for use in products such as liquid crystal display televisions and mobile phones, the statement added.

The company forecast a group net loss of 11.7 billion yen ($A182.61 million), compared with a 950 million yen ($A14.83 million) loss estimated four months ago.

Its operating revenue for the year was estimated at a loss of 1.4 billion yen ($A21.85 million), compared with a previously estimated gain of 100 million yen ($A1.56 million).

The statement said the firm, owned nearly 40 per cent by Fujitsu, would need to book a special loss of 8 billion yen ($A124.86 million) in restructuring-related expenses.

Fujitsu itself said last week it would transfer its struggling hard disk drive business to rival Toshiba Corp, a deal that will push it deeper into loss this year than previously expected.

Fujitsu forecast a net loss of 50 billion yen ($A780.4 million) for the year to March, more than double the 20 billion yen ($A312.16 million) loss it had estimated last month, due to the divestment of its HDD business.

Fujitsu left its forecast for an annual operating profit of 50 billion yen ($A780.4 million) and revenue of 4.7 trillion yen ($A73.36 billion) for the year up to March 2009 unchanged.

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