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Posted by
admin on Tuesday, March 28 @ 22:53:23 EST
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Tech services company Unisys sells stake, starts layoffs of 3,600 people (10%) w
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admin on Tuesday, March 28 @ 22:53:23 EST
: " Tech services company Unisys sells stake, starts layoffs of 3,600 people (10%) worldwide
Tuesday, March 21, 2006
By Deborah Yao, The Associated Press
PHILADELPHIA -- Unisys Corp., the struggling technology services and hardware firm, said yesterday that it has sold its stake in a Japanese distributor and will use the proceeds to start the layoffs of 3,600 employees worldwide, or 10 percent of its work force.
The Pennsylvania-based company said about 3,000 people will be laid off by the end of September and the remaining will be let go by the end of 2006. The job cuts, which were announced in October, are expected to save the company about $250 million (?205 million) a year by the end of 2007. A company release did not spell out what countries will be affected by the cuts.
Unisys received about $374 million (?307 million) from the sale of its 28 percent stake in Nihon Unisys Ltd. of Japan. The sale will result in a a pretax gain of about $145 million (?119 million) in the first quarter.
Even after the divestiture, Nihon Unisys will continue to be the exclusive distributor of Unisys hardware and software products in Japan.
The company also said it sold part of its Unigen semiconductor test equipment business to Cohu Inc., a provider of test-handling equipment for the global computer chip industry in Poway, California. A Unisys spokesman said the deal is not material and the sale price has not been disclosed.
Unisys is in the midst of a top-to-bottom restructuring. The company is divesting noncore businesses, revamping its sales strategy and focusing on higher-growth areas such as outsourcing, open source products, Microsoft offerings and security. "
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