Fujitsu UK job cuts as employees pay the worth for failures of prime executives
Fujitsu employees face uncertainty as provider targets 10% value financial savings amid struggling enterprise interval, whereas as much as 100 can be affected by HMRC contract loss.
The Japanese IT large has seen its UK public sector enterprise starting to battle amid the fallout of the Put up Workplace scandal which it helped gas. It has made important UK workforce reductions up to now two years, however cuts are set to proceed.
In accordance with a supply, the latest lack of the £245m HMRC Dealer Help Service (TSS) contract will have an effect on as much as 100 Fujitsu employees, with TUPE transfers to its substitute provider Netcompany and cuts anticipated.
In the meantime, sources say the corporate has requested its COO to chop prices by 10%, which might put jobs in danger. There have already been at the least 150 job cuts this yr, based on one insider.
A Fujitsu spokesperson stated: “As any giant organisation does, we frequently overview our workforce to make sure we stay aggressive. We’re centered on making certain Fujitsu UK is successfully resourced to ship for our clients and drive long-term sustainable enterprise.”
Regarding the TSS cuts, the Fujitsu spokesperson stated: “Whereas we’re naturally disillusioned with this choice, we are going to proceed to work carefully with HMRC to make sure a easy transition of providers.”
In January 2024, after ITV’s dramatisation of the Put up Workplace scandal, Fujitsu set a self-imposed ban on bidding for brand spanking new public sector work till the scandal public inquiry was accomplished. The inquiry’s major report isn’t anticipated till later this yr, with no date set.
A supply informed Pc Weekly that Fujitsu isn’t solely dropping enterprise the place it’s the incumbent provider, but in addition on bids for work it anticipated to win.
One supply, with information of the state of affairs, stated: “What’s exhausting to disregard is that the human value of the cost-cutting at Fujitsu falls on those that ship the work. Senior leaders aren’t being impacted, however the individuals who do the day-to-day work are being made redundant.”
The supply added: “There’s little seen empathy for these dropping their jobs, although many of those selections come from senior management selections pushed by authorized threat administration and an overriding deal with avoiding admissions of legal responsibility.”
Individually, in July, Fujitsu put almost 500 UK workers on discover of doable redundancy because it plans to chop greater than 100 roles. This adopted cuts in April 2024, when Fujitsu made about 100 jobs defunct in its UK gross sales and pre-sales groups and, months later, it remodeled half of its Oracle Apply workforce – round 60 jobs within the UK – redundant.
Learn extra: Fujitsu’s position within the Put up Workplace scandal: All the pieces you want to know.
HM Income and Customs (HMRC), Fujitsu’s greatest UK authorities buyer, has changed a consortium led by Fujitsu on its Dealer Help Service (TSS) service for Northern Eire, value tons of of hundreds of thousands of kilos.
The federal government division, which is described as Fujitsu’s UK “money cow”, is slicing ties with Fujitsu by way of a datacentre providers tender value £500m designed to exit the provider’s providers. Fujitsu can also be being snubbed within the personal sector. In late 2024, it misplaced out on a contract with British Gasoline proprietor Centrica after the corporate’s board, terrified of reputational harm, blocked it, regardless of the troubled provider being the popular bidder.
The Put up Workplace scandal was first uncovered by Pc Weekly in 2009, revealing the tales of seven subpostmasters and the issues they suffered as a result of Fujitsu’s Horizon accounting software program.
