Digital Equipment offers program to 7,000 employees to retire early

Article Abstract:

Digital Equipment Corp (DEC) is offering an expanded early-retirement program to 7,000 of its US employees in a move to reduce its work force and costs. DEC is cutting its research and engineering expenditures by $400 million a year in the wake of heavy losses in the 2nd qtr 1992 and flat sales. The 4th qtr 1991 saw DEC taking a $1.1 billion charge to cover the work force reductions, which have already seen a cut from 125,800 employees in Sep 1989 to a current 119,500. These have included both voluntary and involuntary terminations. Until the early retirement program, ending May 31, 1992, is concluded, DEC will not implement any other reduction efforts. The program is being offered to employees over the age of 50 having at least five years with the company, who will receive 26 weeks of salary in a lump payment as well as retirement benefits. DEC's stock was up 50 cents to $62.125 on Mar 2, 1992.

Human resource management, Retirement, Early retirement, Cost control, Personnel, Financial Analysis Software, Cost Reduction, Incentives, Work Force Reduction

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Digital Equipment, Mannesmann plan to form European venture

Article Abstract:

DEC agrees to invest $230 million to form a new company with the computer division of Mannesmann AG of Germany. The investment is the largest ever by DEC, and will give the firm a strong presence in Europe's largest computer market as well as placing it in a good position to work within Eastern Europe. DEC will own 65 percent of the new company, called Digital-Kienzle Computer Systeme GmbH, and Mannesmann will own the other 35 percent. Mannesmann Kienzle Computer Systemes employs 3,900 and is the second largest domestic computer supplier in Germany. Analysts say the deal is one of the first examples of an American company acquiring an established European computer firm.

Germany, Joint ventures, Mannesmann AG, Joint Venture, New Company, Acquisition, Foreign Investment, Digital-Kienzle Computer Systeme GmbH und Company KG

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Digital Equipment files plan to offer $1 billion of debt

Article Abstract:

Digital Equipment Corp (DEC) files a shelf registration with the Securities and Exchange Commission (SEC) to sell $1 billion of debt securities. DEC has avoided debt in the past. Robert B. Palmer, who will succeed DEC's president Kenneth H. Olsen, is said to view the uses of debt more favorably than Olsen did. An industry analyst points out that interest rates are low and DEC has a strong balance sheet, so that it is a good time for DEC to borrow. DEC will use the money it raises for restructuring, capital expenditures and working capital. Moody's Investors Service Inc will assign a single-A-plus rating to DEC's issue.

Prepackaged software, Securities, Bonds (Securities), Financing, Bonds, Public Offerings

Similar abstracts:

• Abstracts: More job cuts due in Digital Equipment plan; latest round could total 10,000, or 9% of payroll, depending on revenue
• Abstracts: Digital outlines spending cuts of $400 million: broad reorganization plan said to seek to refocus engineering, research
• Abstracts: Digital's Olsen plans to expand size of board. Digital Equipment senior executive plans to retire
• Abstracts: Digital Equipment inching forward in uneasy search for Olsen's successor. Data General abandons plan to develop communications gear for Japan's NTT
• Abstracts: Digital disbands group, sidelines three officials: move suggests air of crisis as concern reorganizes second time this year

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