IBM taking big charge and cutting jobs
Article Abstract:
IBM has announced it will absorb a $2.6 billion charge to pay for retirement benefits of current employees. The charge will probably result in a large quarterly loss, although IBM will save $300 million in taxes on the deal. The action is the consequence of a new rule initiated by the Financial Accounting Standards Board. The rule requires companies to designate money for each of its employee's eventual retirement benefits. IBM is said to be the first company in the nation implement the rule, which does not become mandatory until 1993. IBM earned $6.02 billion on sales of $69.02 billion in 1990. The company also announces it intends to reduce its world-wide workforce by as many as 14,000 employees. Previous job reductions were concentrated on US operations.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1991
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British plan new phone decontrol
Article Abstract:
Great Britain's government plans to deregulate the nation's telecommunications industry and remove some of the legal barriers that telephone and cable television companies face. Analysts see Great Britain's move as being influential on the telecommunications industry worldwide, particularly in the US. The deregulation will make Great Britain's telecommunication the most open in the world. Industry observers note that the deregulation is an attempt to make the industry more efficient but warn that though less restriction will allow more companies into the market and increase competition only if British Telecom is not allowed to cut prices where challenged while keeping prices high elsewhere.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1990
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