Digital's offer to employees proves popular
Article Abstract:
DEC's plan to reduce its work force with early retirement incentives is working better than expected. About 3,000 of 7,000 eligible employees over 50 are taking the computer maker up on the offer so far; DEC expected that one-third would accept the offer. Industry analysts say that DEC has been working to reorganize itself since 1990 in the face of losses and deteriorating profits. The new total employee count as of the end of Jun 30, 1992, which represents the end of the company's fiscal year, will be 112,000. DEC plans to cut another 10,000 positions in the next fiscal year and expects to take a $1 billion charge in the move.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Digital Equipment staff-cut effort shy of expectations
Article Abstract:
Digital Equipment Corp (DEC) is moving more slowly than expected to reduce staff. DEC is burdened by personnel costs in a time of slow sales, and people inside the company had indicated that cutbacks ranging between 5,000 and 8,000 employees could be expected. Now, DEC says it expects 2,000 employees to leave by the end of the fiscal year, on Jul 1, 1990, out of a total of 5,000 who will be offered voluntary severance packages. Carol Muratore, an analyst at Morgan Stanley & Co, thinks Wall Street will be disappointed. It is not a surprise that DEC is moving slowly, says Muratore, but 2,000 is not enough.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1990
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