Japan's Fujitsu Trying to Sell U.S. Unit in Bid to Cut Costs

Sep 11 2001

TOKYO -- As part of cost-cutting efforts announced last month, Japanese computer giant Fujitsu is trying to sell its U.S. unit that makes and sells telecommunications equipment.

Fujitsu is looking at proposals to sell all or a part of Fujitsu Business Communication Systems, based in Irvine, Calif., a unit of Fujitsu America, spokeswoman Yuri Momomoto said Tuesday while refusing to give details.

Set up in 1976, the company employs 762 people and recorded $122 million in annual revenue, although its business has lagged in recent years. What will happen to the workers is still undecided, Momomoto said.

Hit by a global electronics downturn, Fujitsu is slashing 9% of its global work force, or 16,400 jobs - 11,400 of them overseas. It has said it is making its plant in Gresham, Ore., which employs 860 workers, a 50-50 joint venture with U.S. chipmaker Advanced Micro Devices .

Fujitsu lost 55.4 billion yen in the first quarter that ended in June and forecasts losses for this fiscal year, which ends March 2002.