Fujitsu's Irish operations posts €21.7m loss ahead of winding down

Chief executive of Fujitsu Takahito Tokita. Picture: Shoko Takayasu/Bloomberg

The Irish arm of the Japanese technology company Fujitsu, which is set to wind down its operations, posted a loss of €21.7m during its most recent financial year, the company’s latest financial accounts show.

During the company’s financial year, which ended on March 31, 2024, Fujitsu (Ireland) Limited recorded revenue of just under €52m — down from €63m the year prior.

However, the company reported cost of sales to the tune of €50m resulting in a gross profit of €1.78m. The company said the loss included €16m in “restructuring costs” related to redundancies from the company.

“The remaining loss was mainly attributed to a decrease in revenue from the prior year by €11.4m and the continued delivery of two onerous contracts during the financial year,” the company said.

The loss the company experienced in 2023 was even worse at €33.5m.

As of the end of the company’s financial year, which ended on March 31, 2024, it’s total liabilities exceeded its total assets by €38m.

In its financial accounts, the company said following a review in late 2023 and early 2024, the company decided that it would not pursue any new business opportunities here in the future given the investment required to achieve “sustainable new business”.

The company announced the winding down process in March last year. At the time it had a number of contracts with public sector organisations in Ireland and said at the time it will maintain a small staff in the country after the process is completed.

In its financial statement, the company said between April 2024 and January this year, it has agreed contract exit dates with customers and most of these contracts are expected to be fully delivered by 2026. Other “certain large contracts” will continue to run until 2027.

It also said that it has held a number of collective consultations with staff over redundancies.

“The next schedule of employee collective consultations commenced in early February 2025 and is focused on redundancies between March and July,” the company said.

According to the financial statement, it employed 171 people as of the end of March 2024.