Markets welcome Fujitsu job cuts

NEWS Investors in Europe and Japan have responded positively to the news that around 15,000 Fujitsu workers are to lose their jobs. The pressure on chip prices will force the company to close down manufacturing plants and increase its focus on higher-margin computer services and software. Last month the company issued a warning on its losses at a time when its share price was stuck at a four-and-a-half-year low. This morning, the company, which is listed in Japan and Europe, saw its share price edge up 3.7 per cent in Germany and close up 2.8 per cent on the Nikkei in Japan. General feeling among industry watchers was welcoming. However, the drop in demand for chips and the general lull in the IT sector has brought the share price down by 25 per cent since the beginning of the year, according to financial analysts quoted on Reuters newswire.