Fujitsu will discontinue its hard disk drive heads business with effect from March 31, 2009.
With the closure of the business, Fujitsu plans to recognise a one-time, facilities-related loss of JPY5 billion ($56m) in the consolidated financial statements for the third quarter of fiscal 2008 ended December 31, 2008.
The HDD head development and manufacturing operations are currently performed at the Nagano plant, Japan. The plant also manufactures printed circuit boards for servers and telecommunications equipment, and will continue these operations after March 31.
Fujitsu has said that the 360 employees working for the HDD head business will be reassigned to other operations within the Fujitsu Group.