Wang Labs plans more layoffs in wake of plan to sell computers made by IBM
Article Abstract:
Wang Laboratories Inc plans to reduce its work force by about 20 percent, laying of 3,000-4,000 employees as a result of its recent agreement to sell computers made by IBM. Wang now has about 17,500 workers, down from 31,500 in 1988. Wang expects 'significant restructuring charges' as the company shifts its focus. Work force reductions by themselves could amount to a restructuring charge of as much as $200 million. One industry observer expects Wang to report an operating loss of $100 million, or 60 cents a share, for the 4th qtr, on revenue of about $500 million. In the comparable period a year earlier, the company reported a loss of $496.7 million, or $3.01 a share, with $441.6 million in restructuring charges. Revenue was $652.2 million. Wang's stock closed up 37.5 cents to $3.75 on Friday, Jun 28, 1991.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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No miracle; recession haunts city that believed it was saved by high-tech; Lowell, Mass., computer ills trigger slumps in fields from real estate to bars; an Wang abandons Grotto's
Article Abstract:
In the mid-1970s Lowell, MA was a prime example of a decaying Northeastern industrial town, but in 1976 Wang Laboratories moved to town and Lowell was reborn. Now, however, Wang has come upon hard times and Lowell is once again feeling the pinch. What Lowell and other communities are finding out is that there is little difference between being dependent on the textile or auto industry and being dependent on the computer industry. Lowell's woes can be traced directly to the troubles at Wang, where nearly 10,000 workers have been laid off worldwide since 1985. The repercussions from the slowdown are being felt throughout the community, from hotels, restaurants and bars, to the real-estate market where vacancies in the commercial market are at 20 percent and rental rates are down 25 percent.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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Wang Labs to reduce work force 8%, take $30 million charge in 2nd period
Article Abstract:
Wang Laboratories will lay off 2,000 workers in the 2nd qtr of 1990. The company will pay a $30 million restructuring charge. The company has sustained losses because of the slowdown of the computer industry and is striving to reduce its overhead, which is among the highest in the industry. No further major layoffs are expected. Wang views the layoffs as a way to reduce bureaucratic structure, which has frustrated customers. More emphasis will be placed on developing software.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1989
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