Fujifilm cuts 1,250 jobs as printer demand falls

TOKYO, Oct 31 - Japan's Fujifilm Holdings Corp <4901.T> said it would cut 1,250 jobs at its printer unit, Fuji Xerox Co, amid falling demand, as its shares dived 6.4 percent.

Fujifilm reported on Thursday a 25 percent drop in operating profit for the six months to September and said it would spend up to 35 billion yen buying back up to 3.4 percent of its shares.

The Japanese maker of digital cameras and photo films said on Friday it would also transfer about 1,250 Fuji Xerox employees into marketing jobs from administrative and other tasks.

The job cuts at Fuji Xerox would be made through early retirement, with the cuts and moving of jobs to cost an estimated 8 billion yen ($81 million) in the year to next March, and an additional sum in the next year, a Fujifilm spokeswoman said.

The cuts will trim about 5 percent from Fuji Xerox's staff.

Fujifilm shares dropped to 2,140 yen, underperforming the Nikkei 225 Stock Average <.N225> which fell 3.5 percent. ($1=98.54 Yen)