AT&T cutting computer unit and some jobs

Article Abstract:

AT&T will drastically cut the size of its AT&T Global Information Solutions subsidiary and concentrate on delivering communications, financial and retail products and services. Hardware and service sales will be handled in the future by only two units. AT&T will eliminate its offerings in the public sector, consumer goods, and transportation arenas. AT&T Global Information Solutions was formerly NCR Corporation, and had been unprofitable since AT&T bought it in 1991. In 1995, Global Information Solutions lost $143 million in the first quarter and $189 million in the second quarter. Analysts believe that part of Global Information Solutions' troubles came from the timing of AT&T's NCR takeover, which occurred just as NCR was making the move from mainframes to massively parallel computing, and low-profit PC sales were lowering NCR's traditionally strong cash register sales. News of the restructuring boosted AT&T stock $1.375.

T, American Telephone and Telegraph Co., AT&T Global Information Solutions

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Dell Computer taking aim at consumers

Article Abstract:

Dell Computer will announce the formation of a new, consumer-oriented division. The PC maker's move indicates a major effort to expand its customer base beyond corporate users. An earlier customer sales strategy failed in the early 1990's, but Dell will triple the marketing budget to an unspecified amount, according to Paul Bell, who leads Dell's small-business and consumer subsidiary. Bell added that Dell will spend 'tens of millions of dollars' on primarily TV, newspaper and magazine advertising. Dell is adjusting its previous position that first-time PC buyers required expensive assistance. 'Knowledgeable buyers' totaled around 10% of Dell's $9.8 billion in sales over the last four quarters, Bell said. Dell leads all top-line PC makers in growth, with a 67% revenue growth in the previous quarter. David Hood, former general manager of AT&T's Worldnet Internet access service, will direct the new Dell division.

Analog & Hybrid Computers, Microcomputers, Dell Inc., DELL, Company restructuring/company reorganization, Spinoff company, Spinoffs (Corporate), Home Computer Market, Company Business Management

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Unisys plans to cut jobs in a major reorganization

Article Abstract:

Unisys plans to reorganize into three divisions and reduce its workforce in a cost-cutting effort. The divisions will include one hardware and two service units, one handling MIS at other firms as well as systems integration and the other focusing on computer and network maintenance. The company plans to take a charge of more than $400 million pursuant to these activities. Unisys shares rose 37.5 cents on the news. The company was among the first hardware makers to reorganize in 1991. It grew for two years but flattened out in 1994. In 2nd qtr 1995, earnings fell 20% from $49.9 million to $39.8 million. Observers believe Unisys will break even for 1995. Unisys' systems integrations and consulting offerings are growing at 20% annually, but that is unremarkable in a rapidly expanding field, and the company has lost much of its senior management. Unisys has no definite figures on job losses.

Computers, Unisys Corp., UIS

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