Data General is said to plan further cuts: layoffs could exceed 17%, or 2,000, at ailing firm; sale speculation denied

Article Abstract:

Data General Corp still faces difficult economic times, and sources say the minicomputer maker may layoff 2,000 employees, or roughly 17 percent of its workforce. Analysts say the company's main product line is deteriorating as customers look to high-powered microcomputers and workstations instead of buying minicomputers. Data General is attempting to change its product makeup to include workstations, but competition in that area will make gaining market share difficult. Data General's stock is currently trading at $5.75, near the one-year low of $5.00. The firm also backed off an earlier forecast that it would break even or show a small profit in its 4th qtr 1990.

Human resource management, Cost control, Data General, Financial Analysis Software, Cost Reduction, DGN

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Digital Equipment reassigns executives, begins cuts, probably including layoffs

Article Abstract:

DEC initiates a $1 billion cost-cutting strategy in Dec 1990 and may begin layoffs as early as Jan 1991. The shakeup follows a decline in DEC stocks from over $90 a share in May 1990 to below $60 a share in Dec 1990. Industry observers blame the drop on a resurgent IBM and on internal problems. DEC net income for the 1st qtr ending Sep 30, 1990 was down to $26.2 million, or 83 percent lower when compared to the same period in 1989; revenue was down to $3.09 billion, one percent off from the same period in 1989. DEC has implemented a volunteer resignation program, but if results remain weak, DEC will order the layoffs.

Management, Business planning, Digital Equipment Corp., DEC, Computer Industry, Losses

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