More job cuts due in Digital Equipment plan; latest round could total 10,000, or 9% of payroll, depending on revenue
Article Abstract:
Digital Equipment Corp (DEC) plans to cut its workforce by 9,000 to 10,000 employees, which represents about 9 percent of the company's payroll. A spokesman for the company, Senior VP for Operations John F. Smith, says the cuts will occur in the fiscal year that starts on Jul 1, 1991, and the exact number of jobs cut will depend on economic conditions. DEC has already cut almost 10,000 jobs, with 1,500 cuts still to be made before Jun 30. In Dec 1989, at its peak, DEC employed 125,900 people. For many years, DEC - like IBM - managed to avoid layoffs of personnel in hard times, but advances in technology combined with the recession and an industrywide shift to smaller computers leave the company no choice. According to Smith, the cuts will be painful, but the company's competitive position is at stake.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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Digital Equipment, in its first layoffs, to dismiss about 3,500 workers by July
Article Abstract:
DEC plans to dismiss 3,500 workers by Jul 1991 in its first round of layoffs. The computer maker is initiating its first-ever layoff because of necessary cost-cutting measures and the failure of a voluntary severance program, which attracted only 2,500 takers out of 6,000. DEC indicates that the layoffs will not result in any new charges against earnings for the fiscal year, which ends Jun 30, 1991. DEC will report the results of its 2nd qtr ending Dec 31, 1990 in Jan 1991 and the company indicates that the layoff announcement is not meant to imply anything about those results. DEC posts an 83 percent drop in profit to $26.2 million on a 1 percent revenue decline to $3.09 billion for the 1st qtr. The company's stock falls $1.125 a share and closes at $52.625 a share on Jan 9, 1991.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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Digital offers severance plan to 700 workers; firm expects as many as 300 to accept proposition aimed at cutting costs
Article Abstract:
Digital Equipment Corp is offering a voluntary severance pay plan to 700 manufacturing employees to help lower corporate expenses. DEC reports that 200 to 300 people are expected to accept the plan, which offers between 40 and 104 weeks of pay, according to how long the employee had worked, and a year of health insurance. As growth for the company has slowed, profit margins have decreased and DEC has looked for ways to cut costs. Part of the reallocation program includes shifting 4,000 manufacturing and administrative workers to customer service and sales jobs, and an additional 1,000 to 2,000 will be retrained in fiscal 1991.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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