Digital disbands group, sidelines three officials: move suggests air of crisis as concern reorganizes second time this year

Article Abstract:

Digital Equipment Corp (DEC) has disbanded a newly created engineering group and sidelined three senior executives in a sweeping reorganization. The engineering group's tasks will be distributed to marketing units, a move that strips chief engineer William D. Strecker of his duties and much of his influence. Company personnel say the reorganization is an effort to bring engineering closer to the customers, but observers and analysts see it as an indication that the minicomputer firm is in disarray. DEC may be abandoning strategies that have not worked in the intensely competitive computer market, according to some analysts; others have given up on the firm, complaining about its slow change and reluctance to carry out tough cost-cutting measures. The firm expects to cut its staff from 116,000 to about 100,000 by the end of 1992. Two little-known executives, Frank McCabe and Chrales F. Christ, gained significant new responsibilities in the reorganization.

Electronic computers, Prepackaged software, Appointments, resignations and dismissals, Executives, Corporate reorganizations, Digital Equipment Corp., DEC, Executive, Reorganization

---

Computer clone pioneer Michael Shane halts manufacturing at Model American

Article Abstract:

Michael Shane, who founded Leading Edge Products, the computer clone company, will shut down sales and manufacturing at his 16-month old company, Model American Computer Corp. Three distributors have licensed the Model American name and will continue to use the name to market microcomputers. Model American itself will license and market its brand name, and the company will design products. According to Shane, Model American created a demand that exceeded its ability to supply, and no financing for expansion could be found. Some dealers and resellers are upset, being left in an awkward situation by Shane's decision.

Computer peripheral equipment, not elsewhere classified, Computer industry, Compatibility (Computers), Compatible Hardware, Companies, Manufacturers, Licensing, Financial Stability, Shane, Michael, Model American Computer Corp.

---

Similar abstracts:

• Abstracts: Digital outlines spending cuts of $400 million: broad reorganization plan said to seek to refocus engineering, research
• Abstracts: Tandy Corp indicates its 4th-period net could fall 66% as concern shifts focus
• Abstracts: Letting chips fall; a PC price war has computer buyers on a shopping spree; cuts responsive to Compaq's among makers of clones excite retailers as well; software, printer sell apace
• Abstracts: Pragmatism wins as rivals start to cooperate on memory chips
• Abstracts: SEC asks AT&T for information in Teradata bid. AT&T and NCR amend merger accord; target concern to stop paying dividends

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.