Digital outlines spending cuts of $400 million: broad reorganization plan said to seek to refocus engineering, research

Article Abstract:

Digital Equipment Corp (DEC) is cutting out as much as $400 million from its engineering and research budgets as part of a complete reorganization of the company that is the result of unexpected large operational losses in the 2nd qtr 1992. Investors should be pleased by the move since many analysts feel DEC's spending has been out of proportion to its production. DEC spent $1.65 billion on research and engineering in fiscal 1991. Cutting research spending will likely be uncomfortable for DEC, which has prided itself in its research commitment, but research should remain effective by becoming more efficient. Engineering will be affected in product line simplification and packaging, as each product line is evaluated in the light of DEC's transition to its new computer design, code-named Alpha. Senior executives are not exempt from the reorganization and cost cutting as their value to DEC is reevaluated.

Industrial research, Engineering, Industrial productivity, Packaging, Digital Equipment Corp., DEC, Cost control, Research and Development, Productivity, Marketing Strategy, Cost Reduction

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Push into PCs: NCR is revamping its computer lines in wrenching change; speedy new machines drop proprietary system to use standard chips, software; an old firm on a fast course

Article Abstract:

NCR Corp is once more undergoing a reorganization designed to improve profitability and take advantage of standardization and the move toward open systems in the computer industry. NCR's management is refocusing its thrust away from proprietary systems and toward high-powered, reasonably priced computers that can support hundreds of standard software applications. The company has unveiled what us believed to be the fastest microcomputer on the market. It also has agreed to work with Teradata Corp to develop massively parallel computers from hundreds of standard chips. The new products are designed to gain new customers for NCR since annual sales have been basically flat at $6 billion for two years. Sales of proprietary computer lines in particular are declining.

Contracts, Product development, NCR Corp., NCR, Cooperative Agreements, Case Study, Open Systems, Teradata Corp., TDAT

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Data General could be profitable soon due to 17% cut in force, analysts say

Article Abstract:

Data General Corp's 17 percent reduction in workforce could bring the company back into profitability by Feb 1991. The minicomputer maker stated that it is laying off an additional 2,000 workers and taking a $70 million charge for the fiscal 4th qtr, which ends Sep 29, 1990. Analysts estimate that quarterly savings resulting from the layoffs could be more than 70 cents a share and reverse the recent operating losses the company has been experiencing. Data General has lost $50.5 million, or $1.69 a share, on revenue of $907.9 million since Jan 1990. The company lost $35.7 million, or $1.22 a share, on revenue of $957.3 million during the same period in 1989. Data General's shares closed at $6 on Aug 24, 1990.

Business planning, Layoffs, Layoff, Data General, Strategic Planning, DGN

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