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Attachment: Details of Structural Reform of Operations



I. Information Processing Group
  1. Strengthen core businesses: restructuring cost 30 billion yen

    Concentration and consolidation of development activities
    • Concentrate UNIX server and storage development to Fujitsu Limited
    • Concentrate IA server development to Fujitsu Siemens Computers(Germany)
    • Liquidate HAL and concentrate processor development to Fujitsu Limited
    • Consolidate software development operations in North America

    Rationalizing of domestic manufacturing facilities
    • Servers and storage: consolidate three plants into one
    • IA servers: unify with desktop PC production lines

  2. Selection and concentration of independent businesses: restructuring cost 50 billion yen

    Hard disk drives (HDD)
    • Concentrate on HDDs for servesr and mobile PCs
    • Withdraw from desktop HDD business - downsize overseas manufacturing sites and trim sales organization (4,200 personnel affected overseas and 300 in Japan)

    Printers - downsize operations
    • Concentrate production of system printers at Fujitsu Peripherals Ltd.
    • Transfer color laser printer manufacturing to joint venture with Minolta

    Consolidate scanner business to PFU

    Consolidate domestic PCB manufacturing plants

II. Telecommunications Group
  1. Strengthen core businesses: restructuring cost 45 billion yen

    Strengthen advanced products and solutions businesses
    • Concentrate resources on development of photonic, IP and 3G mobile products
    • Transfer development of Access products to affiliated companies
    • Shift manpower to strengthen sales and SE force; consolidate and reorganize related companies in Japan and overseas
    • Reorganize domestic and overseas affiliated companies to consolidate low-growth businesses

    Strengthen ability to respond to changes in demand; seek low-cost production
    • Reassess and streamline personnel at Oyama, Nasu and Numazu plants
    • Reduce personnel at FNC in the U.S. and FTEL in the U.K.
    • Reorganize and consolidate plants of related companies


III. Electronic Devices Group
  1. Strengthen core businesses: restructuring cost 125 billion yen

    Concentrate research at Akiruno Technology Center
    • Consolidate research on next-generation semiconductors at Akiruno
    • Further collaborate with Information Processing and Telecommunications Groups as well as Fujitsu Laboratories

    Streamline domestic plants to strengthen manufacturing capacity
    • Restructure Gresham plant (Oregon, US) operations (merger with AMD)
    • Restructure domestic front-end production lines from 12 to 9
    • Consolidate back-end processing fabs from 7 to 5

  2. Selection and concentration of independent businesses: restructuring cost 20 billion yen

    Streamline operations
    • Compound semiconductors
    • SAW filters
    • Components

    Consolidate PDP production at Unit 2 of the Miyazaki Plant

    Create a separate company for LCD operations

IV. Services and Software Group
  1. Strengthen core businesses: restructuring cost 30 billion yen

    Reorganize global business structure
    • Reorganize ICL and DMR

    Transform operating structure
    • Strengthen infrastructure services business
    • Develop new types of business and entering new fields
      - Strengthen IT consulting services
      - Promote componentization of software for greater productivity
      - Promote businesses related to e-Japan (electronic government)

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