Xerox to cut 9,000 jobs over two years: restructuring charge is set for $1 billion as firm seeks to reduce costs

Article Abstract:

Xerox announced plans to cut approximately 9,000 jobs by 2000 and take a $1 billion after-tax restructuring charge in the 2nd qtr in an effort to control costs that continue to outpace those of new rivals. The copier maker's approximately 10% job reduction will take place amid record earnings, a surging stock price and a renewed focus. Xerox says it must allocate its expected annual savings of up to $1 billion toward expenses for introducing new, less expensive digital copiers. These digital products accounted for around 36% of Xerox's $18.2 billion in 1997 sales. Xerox's selling, general and administrative (SG&A) expenses consumed 29% of its 1997 sales, compared to printer maker HP's 17% total. Other new rivals include Lexmark International Group. Xerox Pres G. Richard Thoman said the move was necessary while the company is in a position of great strength.

Office machines, not elsewhere classified, Office Machinery Manufacturing, Duplicating Machines, Management, Xerox Corp., XRX, Human resource management, Computer peripherals industry, Company restructuring/company reorganization, Reorganization and restructuring, Photocopiers, Layoffs, Copying machines, Thoman, G. Richard, Layoff

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The traffic cop

Article Abstract:

Chris Huckenpoehler is one of about 80 employees at WorldCom/Uunet's network operations center (NOC) in Fairfax, VA, in charge of monitoring digital traffic, much like a traffic cop. NOC provides the giant fiber pipelines that comprise Internet backbones, on which Internet service providers hook up to. All Internet backbones, including Uunet, GTE, MCI and Sprint, are part of a 'peer' network, that pass along one another's traffic without restrictions or tolls. Huckenpoehler has to make sure not only that Uunet's network is up and running but also that there is no glitch in the peer network. A problem in any stretch of any network can cause global jams. Huckenpoehler is able to redirect data traffic to a different path or backup route, an option available to him because of Uunet's completely redundant parallel network.

Telegraph & other communications, Specialized Telecom Services, Wired Telecommunications Carriers, Officials and employees, Telecommunications services industry, Telecommunications industry, Internet services, Interview, Internet/Web overview, Backbone network, Backbone networks, UUNet Technologies Inc.

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IE is accused in ex-employee's suit, recently unsealed, of improprieties

Article Abstract:

A former executive is charging Intelligent Electronics Inc (IE) with overstating inventory value, misuse of marketing funds and artificially boosting sales. Daniel Shannon was an in-house counsel for the company and claims that he was fired because the company did not want him to interfere with its illegal reporting methods and theft of marketing funds. IE CEO Richard Sanford says that the charges are false and that the company will be cleared in court. The lawsuit was sealed when the company requested a preliminary injunction against the plaintiff but a judge unsealed the case after a request by the publisher of the Wall Street Journal. The suit charges IE with overbilling its computer manufacturers for marketing development and for recording false sales on the last two days of Jul 1993.

Computer industry, Cases, Firings, Intelligent Electronics Inc., INEL, Lawsuit Litigation

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