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Fujitsu IT contractors latest to suffer contract rate cut

Published on Apr 23, 2009 | | Contract Rate Checker

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Contractors at Fujitsu are the latest to be told to accept a 15% rate cut.

In March, permanent staff at the the IT giant were told that pay would be frozen across Europe due to the economic downturn. Around 21,000 staff are thought to have been affected.

Around 450 staff employed by agencies are expected to be affected by the rate cut, which will be implemented over the coming month.

According to technology site, The Register, Fujitsu explained that costs need to be "realigned" with the external market.

The company said that the freelance market had been directly affected by the economic downturn, and rates had dropped as a result, and "market commentators indicate that overall rates for contractors have dropped across the UK by c20%".

This latest news follows similar cuts at BT, Aviva, BP, Capgemini, and many other leading companies, as the demand for IT workers in general continues to retreat.

According to the latest SSL survey, the number of IT contract jobs advertised has fallen by over 60% since early 2008.