Fujitsu has informed staff of cost-cutting measures it has put in place as it faces challenges amid its much-publicised involvement in the Post Office Horizon scandal.
Prior to the festive period, UK staff were sent a memo instructing staff on aggressive cuts to spending on travel, recruitment, social and external organisations.
The impact of the Horizon scandal on Fujitsu has been significant. In January 2024, following ITV’s dramatisation of the scandal, the supplier agreed with the government to cease bidding for new public sector contracts until the public inquiry into the scandal completed its work.
In its latest financial statement for the 12 months to March 2024, the company reported a loss of just over £170m, compared with a loss of £99m in the previous 12 months.
This period covers up to few months after Fujitsu stopped bidding for public sector work, so the situation could get worse. Sales continued to fall during the year, and Fujitsu may also need to contribute to the cost of compensating victims of the scandal it was partly responsible for.
In its statement to Companies House, under the Risks section, Fujitsu said: “The extent of reputational and financial risk will not be known until the inquiry has concluded and published findings. Based on these findings, the company expects to take appropriate and proportionate measures to engage with the UK government with respect to a contribution towards the UK government’s compensation schemes.
“Loss of future new business due to the reputational damage arising from the Horizon inquiry remains a key risk to the company’s business plans.”
2024 was a year Fujitsu would like to forget
- Anger sparked by TV drama forces Fujitsu to put public sector contract bidding on hold
- How Fujitsu became a central part of the Post Office scandal
- Fujitsu to finally face blame for its part in Post Office Horizon scandal
- Fujitsu staff instructed how to bid for government contracts during self-imposed ban
- Fujitsu snubbed on private sector deal with Centrica due to Post Office scandal backlash
- Fujitsu to cut UK jobs as Post Office scandal fallout hits sales
- Post Office and Fujitsu had tense relationship, but were joined at hip when protecting their brands
- Post Office and Fujitsu malevolence and incompetence means huge final taxpayers’ bill
- Fujitsu’s charity boss made redundant while Post Office scandal victims await support
- Post Office scandal not caused by software errors, says combative Fujitsu boss
The company, which said its UK business spends about £10m a year on staff travel, told UK staff that all domestic travel to internal meetings and events should be avoided, with Microsoft Teams to be used for meetings unless “it would have a significant negative impact on the meeting”. It told staff that international travel should not be taken unless “directly related to customer activity”.
The company also outlined its preference for roles to be filled internally before recruiting externally. “We will continue with our principle of seeking to fulfil approved roles with current Fujitsu colleagues,” it told staff. “We will recruit externally to fulfil customer requirements, but only after considering internal moves, including promotions.”
It said all current contractors are being reviewed, including current open requirements: “Where possible, we will be seeking to replace contractors with current Fujitsu colleagues.”
The company is also putting strict controls on spending on companies outside Fujitsu, with preapproval from the UK leadership team needed for spending over a certain amount.
Fujitsu is also tightening the purse strings for staff social events, asking those who have not already scheduled or held a team social to consider delaying until the new financial year after 31 March.
Timeline: Computer Weekly articles about the scandal since 2009...
See the link for tons of links.