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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (58555)	1/9/2002 2:50:06 AM
From: StanX Long	Read Replies (1) \| Respond to of 70976

01/08 21:28 Fujitsu Plans to Cut Workers' Salaries at Chip Plants (Update3) By Minoru Matsutani quote.bloomberg.com Tokyo, Jan. 9 (Bloomberg) -- Fujitsu Ltd., which expects a record loss of $2.3 billion this fiscal year, said it plans to cut by a third the hours worked by 5,000 employees at its chip plants in Japan to trim costs and avoid job cuts. Workers at three plants in Iwate, Fukushima and Mie prefectures will be affected, Senior Executive Vice President Takashi Takaya said in an interview. The company is negotiating details of the work-sharing plan with labor unions, he said. Fujitsu, which is slashing its workforce by 20,900 this fiscal year, is spending 350 billion yen ($2.6 billion) to cut jobs and reorganize its businesses. Fujitsu's shares fell 43 percent last year as the chip industry suffered its worst year on record when makers of personal computers and other consumer electronics curtailed buying chips to work off their inventories. ``Fujitsu is trying many methods to cut labor costs because firing isn't an option in Japan,'' said Tetsuo Kawai, who helps manage 3.5 trillion yen in assets at Daiwa SB Investments Ltd., which holds Fujitsu shares. ``Wages are way too high in Japan.'' Fujitsu expects its chip unit to post losses of 50 billion yen in the year ending March 31. Worldwide, the chip industry saw sales plunge to a record low of $120 billion last year. ``The situation in the chip business will probably be harsh again this year,'' Fujitsu's Takaya said. ``We've got to have options to cut our costs.'' Fujitsu's shares fell as much as 1.7 percent to 990 yen, and were recently at 998. Led by Fujitsu, the TOPIX Electric Appliances Index fell as much as 0.5 percent in morning trade.