Fujitsu says it will cut a further 4,500 jobs by March next year.
The company has already revealed 16,400 lay-offs this year.
Most of the job losses, 4,000 out of the total, will come from plants outside Japan. Fujitsu reported an interim net loss of £979 million.
This contrasts with a profit of £98 million for the same period of last year.
A company statement says "Further deterioration in the financial condition of overseas telecommunications carriers, particularly in North America, led to sharply lower demand and price erosion in optical transmission systems.
"The market for electronic devices also rapidly worsened as a result of weak demand and further price erosion."
Fujitsu's shares have fallen about 16 per cent since August when the company, whose first-quarter losses quadrupled on lower chip prices, outlined its job cuts.
The company also raised its estimate for restructuring costs.
It will now take a charge of euro 3 billion in the current year to March 2002, more than the euro 2.7 billion it had planned.
Fujitsu said it will cut investment in its chip-making business this year by euro 1 billion.
PA