Fujitsu Services is to make up to 1,200 jobs in the UK redundant because of lower-than-expected sales.

The firm says its has “reluctantly” taken the decision to make the cuts, which represent nearly 10 per cent of its 12,500 employees.

“Action is necessary to ensure that the company remains competitive in the current difficult global economic climate and is in a solid position for future growth when the economy starts to recover,” said the supplier in a statement.

“To date the company has taken a number of prudent measures to keep its cost base down and avoid job losses, including a company wide pay freeze, a reduction in the number of contractors and temporary workers, a re-training programme and tight control of recruitment. In addition strict controls have been applied to operational and capital expenditure.”

Trade union Unite, which represents a number of Fujitsu staff, called the layoffs "wholly unwarranted".

“These proposed redundancies are wholly unwarranted given the company made £200m in profit last year. It even paid two directors £1.59m in compensation for loss of office,” said Peter Skyte, Unite national officer for IT and communications.

“Unite is pressing for detailed information about the reasons for this proposal and the areas affected. We will be doing everything possible to protect the jobs of the workforce.”

The redundancies are expected to be completed by the end of the year.