Big Digital charge due to cover 4,000 layoffs

Article Abstract:

DEC announces a $500 million to $1 billion restructuring charge for 4th qtr FY 1992 that is to cover expenses associated with the layoff of 4,000 employees. The computer company has been experiencing economic difficulty, losing $294 million in its fiscal third quarter. Senior VP of Operations John F. Smith says that DEC will cut from 10,000 to 15,000 employees during FY 1993, which starts July 1, 1992. The reductions will be across the board, but sales and support operations will be the most impacted by the work force reduction. Smith does not expect DEC to earn a profit during FY 1993, but says that the job cuts will save the company $500 million. During the last two years, DEC has taken $1.65 million in restructuring charges. Smith also predicts that DEC will spend its entire $700 million reserve fund by the end of 4th qtr 1992.

Economic aspects, Finance, Accounting, Layoffs, Layoff, Personnel Management, Losses

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Digital leaders: varied style, similar histories

Article Abstract:

Robert B. Palmer is succeeding Kenneth H. Olsen as DEC's president and CEO. Palmer has a master's degree in physics from Texas Tech University and founded a technology company, the Mostek Corp in 1972. Palmer acted as DEC's VP of manufacturing and logistics and praises the former DEC founder and president. DEC's semiconductor business was run by Palmer from 1986 to 1992 and has become the business model for the computer side of the company. Palmer believes the computer industry is rife with price cuts, technological advancements and cost cuts that did not exist ten years ago. Palmer redesigned the chain of production in such a ways to save the company almost $1 billion annually.

Management, Officials and employees, Computer industry, Management Style, Promotion of Employee, New Appointment, Palmer, Robert B.

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