Fujitsu Services intends to cut 10 percent of its UK workforce before the end of the year.
The company blamed the proposed job losses on “lower than anticipated revenues”.
The company, lost a £900m contract to deliver IT services to the National Health Service last year
The job losses follow a company wide pay freeze, a reduction in the number of contractors and temporary workers, and tight control of recruitment. Fujitsu is also proposing to end a final salary pension scheme.
Unite, the largest union representing Fujitsu workers, said the move was "wholly unwarranted".
Peter Skyte, Unite national officer for IT and communications, said: “These proposed redundancies amounting to 10% of its UK workforce 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.
He said the union “will be doing everything possible to protect the jobs of the workforce.”
The Public and Commercial Services Union (PCS) which represents 750 workers in Fujitsu, many who have been outsourced from the public sector, said it would fight any compulsory redundancies.
Commenting, Mark Serwotka PCS general secretary, said: “We stand to lose not just jobs, but essential expertise in the operation of the IT systems that support services to the British public. Services to the hard working tax payer are bound to suffer as highly skilled IT professionals are thrown on to the dole queue. Over the coming days and weeks we will be campaigning against the job losses and against compulsory redundancies.”