Fujitsu Siemens Computers has announced plans to eliminate approximately 700 jobs in Germany, which represents about 12 percent of its workforce in the country, due to ongoing competitive and economic challenges.
Fujitsu Siemens Computers Holdings (FSC) is the largest European manufacturer of personal computers and employs around 10,500 workers worldwide, the majority of whom are in Germany. The company emphasized that the job cuts are not a result of a new ownership structure but rather a move aimed at improving profitability and competitiveness. Management began negotiations with union representatives regarding its plans on Thursday, Fujitsu Siemens reported.
This month, Japanese electronics conglomerate Fujitsu Ltd. stated that it would purchase Siemens’ 50 percent stake in the joint venture for 450 million euros. At that time, the Japanese claimed they did not plan any job reductions. Profit margins in the personal computer industry are modest due to the large number of manufacturers and offerings, as well as intense price competition.
