The Channel logo

News

By | Chris Mellor 1st December 2008 11:07

Auf Wiedersehen to 700 FSC workers

Can't be profitable with you

Fujitsu Siemens Computers is firing 700 employees in Germany to increase its profitability in a move it says is not connected to Fujitsu's buying out of Siemens AG's 50 per cent holding in FSC.

FSC is jointly owned by Siemens and Fujitsu, but Siemens is selling out, receiving €450m ($580.5m) for its half share as it wants to increase its own profitability. When the deal was announced on November 4 it was said that no layoffs were planned. Subject to government approval the deal will formally take place on April 1 2009, otherwise known, ironically enough, as Erster April in Germany - April Fool's Day.

Siemens itself is laying off some 17,000 workers.

In a statement issued to the German press on Thursday November 27, FSC said that competitive pressures and the generally poor economic situation meant that the layoffs were necessary to ensure its profitability.

FSC began talking to the IG Metall union on Thursday regarding the planned cuts. German law requires that layoffs must be agreed with worker representatives on the FSC supervisory board. The layoffs represent 12 per cent of FSC's 5,850 or so employees in Germany. There are about another 4,700 employees outside Germany, mostly in Europe.

It is generally reckoned to be harder to sack workers in Germany than other European Union states. If FSC is laying people off in Germany and not taking the apparently easier option of doing it elsewhere then the situation must be dire and there will be concern in FSC operations elsewhere in Europe that an axe is poised over them too. ®

comment icon Read 2 comments on this article alert Send corrections

Opinion

Tim Worstall

Or why the reversal of globalisation ain't gonna 'appen
The full Spanglish breakfast: mealy pudding, bacon, black pudding, sausages, fried egg, toast
Blood image

Trevor Pott

Can the storage giant overcome a lack of necessary leadership?

Chris Mellor

Why overlapping kit from a merger equals a disaster in waiting

Features

No, silly... he was the fall guy for years of Finnish folly
Fraud image
Frodo and the Ring
Microsoft's strategy is to make Store apps popular. Good luck with that