Fujitsu Ld Policies to Strengthen Management Fundamentals (0972B)

TIDMFUJ

RNS Number : 0972B

Fujitsu Ld

28 March 2013

Fujitsu Limited

March 28, 2013

Fujitsu Issues Progress Report on Policies to Strengthen its Management Fundamentals

Tokyo, March 28, 2013 - Fujitsu Limited has announced its decision, made at a Board of Directors meeting held today, to implement the following specific measures to address underperforming businesses and strengthen its management fundamentals. In accordance with the management direction it announced on February 7, 2013, Fujitsu is seeking to promote a transformation toward stronger fundamentals in order to achieve its medium term targets.

I. Specific Measures to Address Underperforming Businesses

To address issues in underperforming businesses, the following workforce related measures will be implemented.

1. Early Retirement Incentive Plan for the Semiconductor Business

(1) Coverage: Employees of the Fujitsu Semiconductor (FSL) Group worldwide

(2) Number of employees: Approximately 2,000 (1,600 in Japan, 400 outside of Japan)

   (3) Enrollment period in Japan:                April 17, 2013 to April 26, 2013 (scheduled) 
   (4) Retirement date in Japan:                  June 30, 2013 (in principle)

(5) Support provided in Japan: Additional retirement benefits and assistance in finding new employment through employment agencies

* For subsidiaries of FSL outside of Japan, the terms and conditions will be set in accordance with the regulations of each country.

2. Workforce Rationalization in Structural Transformation of Fujitsu Technology Solutions

   (1) Coverage:                             Employees of the Fujitsu Technology Solutions (FTS) Group 
   (2) Number of employees:           Approximately 1,500

(3) Timing of transformation: Set in accordance with regulations of each country (Starting in the first half of fiscal 2013)

(4) Support provided: Severance package based on negotiations with employee representatives in each country

* With respect to the rationalization of its workforce, the FTS Group is deliberating with employee representatives at each of its Group companies based upon the regulations of each country and the policies of each company.

II. Structural Transformations to Strengthen Management Fundamentals

To build a foundation for future growth and strengthen its value-added services businesses, Fujitsu is pursuing a variety of structural transformations to strengthen its fundamentals. These include shifting resources into growth areas, improving the efficiency of corporate functions, carrying out thorough company-wide cost-reduction measures, and enhancing its ability to keep pace with market changes. As part of these efforts, today it was decided to implement the following measures.

1. Reductions in Executive Compensation and Managerial Level Compensation

- Compensation for Fujitsu Limited executives will be reduced by between 10-50% from April 2013 until December 2013 (scheduled)

- Compensation for Fujitsu Limited managerial levels will be reduced by between 3-7% from April 2013 until December 2013 (scheduled)

2. Early Retirement Incentive Plan for Managerial Levels of Fujitsu Group Companies in Japan

   (1) Coverage:                             Managerial levels over the age of 50 as of June 30, 2013 
   (2) Number of employees:           Approximately 300 
   (3) Enrollment period:                 April 22, 2013 to May 17, 2013 (scheduled) 
   (4) Retirement date:                   By June 30, 2013

(5) Support provided: Expand the existing work redeployment program and provide additional retirement benefits. Furthermore, offer assistance in finding new employment through employment agencies.

3. Reductions in the Use of External Resources

In the process of reviewing the company's business processes, there will be a reduction of approximately 1,000 external contract workers during fiscal 2013.

III. Impact on Financial Results

The losses expected to be generated as a result of the implementation of the measures outlined in I-1, 2 and II-2 have been factored into the consolidated financial projections for fiscal 2012, but a breakdown of expected losses for each individual measure is still being determined. Furthermore, the effects of I and II on financial results from fiscal 2012 onward are also still being determined.

The measures outlined in I-1, 2 and II-2, 3 represent the components of the workforce rationalization in and outside Japan resulting in a reduction of approximately 5,000 employees announced at the management direction briefing held on February 7, 2013.

Press Contacts

Fujitsu Limited

Public and Investor Relations Division

Inquiries: https://www-s.fujitsu.com/global/news/contacts/inquiries/index.html

About Fujitsu

Fujitsu is the leading Japanese information and communication technology (ICT) company offering a full range of technology products, solutions and services. Over 170,000 Fujitsu people support customers in more than 100 countries. We use our experience and the power of ICT to shape the future of society with our customers. Fujitsu Limited (TSE:6702) reported consolidated revenues of 4.5 trillion yen (US$54 billion) for the fiscal year ended March 31, 2012. For more information, please see http://www.fujitsu.com.

All company or product names mentioned herein are trademarks or registered trademarks of their respective owners. Information provided in this press release is accurate at time of publication and is subject to change without advance notice.

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCGMGZFVRKGFZG

Fujitsu (LSE:FUJ)
Historical Stock Chart
From Jan 2025 to Feb 2025