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The radical restructuring announced by computer giant Fujitsu Ltd. earlier this week — involving 16,400 job cuts — may not be enough to assure recovery of the company’s fundamentals, Standard & Poor’s said Thursday.

The U.S. credit-rating agency said that while Fujitsu may be able to prevent further losses, revival of its basic earnings capacity is not guaranteed.

S&P also warned that the company’s rating could be lowered if recovery is delayed.

“The company’s ability to achieve a sustained improvement in its earnings will depend on whether it can boost its competitiveness in its mainstay software and service businesses,” the agency said.

In particular, Fujitsu’s semiconductor operations involving its “strategically important system LSI businesses,” are critical to assuring recovery, the agency said.

On Monday, Fujitsu announced details of its restructuring plan, saying it would slash its group workforce by 9 percent, or 16,400 jobs at home and abroad, by end of this fiscal year.

The company said it will also cut fixed costs and expenses by 100 billion yen annually through intensified efforts to promote structural reforms.

Fujitsu said it aims to post a 400 billion yen group operating profit in fiscal 2003 with a return on equity of more than 10 percent.

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