IBM, Japan's Hitachi agree to develop high-end printers in a tentative pact

Article Abstract:

A tentative agreement between IBM and Hitachi Ltd of Japan will allow the two companies to jointly develop high-end computer printers. The pact is largely the result of efforts by Pennant Systems Co, an autonomous unit of IBM created by the 1991 corporate reorganization. The contract will reduce product development costs for both companies. Pennant will be mostly responsible for the production and marketing of the printers, which may be available as early as 1993. The contract is regarded as a vast improvement in the historically strained relationship between Hitachi and IBM. In 1983 Hitachi paid IBM $300 million to settle a lawsuit concerning stolen IBM technology, and the two have been foes until very recently. The two companies also have earlier agreements by which Hitachi resells some IBM-made notebooks and IBM resells some Hitachi printers. The new deal reinforces their improving relationship.

IBM, Contracts, Computer peripherals industry, Hitachi Ltd., Printers (Computers), Printers (Equipment), Competition, Printers, Cooperation

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IBM to weigh big new round of cost cutting; special board meeting set to consider asset sales, work force reductions

Article Abstract:

IBM hastily calls for a special board meeting to tackle new cost cutting measures, probably involving the divestment of some of its mainframe assets and further reductions in its work force. The computer giant is going through the worst financial crisis in its 78-year history and had earlier sold a wide range of physical assets and cut 40,000 jobs worldwide. For the special board meeting, analysts from Salomon Brothers predict that IBM will try to reduce its 1993 budget by $2- to $3 billion and reduce its work force by an additional 30,000 employees. It is not yet known whether the company is ready to break its tradition of avoiding layoffs. According to company insiders, the board meeting agenda does not include the fate of John F. Akers, IBM's CEO, and other executives.

Planning, Computer industry, Management, Business planning, Board of Directors

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