Still bleeding copiously in the cut throat personal computer market, Ing C Olivetti & Co SpA is to announce a reorganisation to cut costs further, Reuter hears from industry sources: the second shake-up in the past 12 months is expected to streamline internal services and review some of the marketing structures: Despite Olivetti’s best efforts, it is continuing to be hurt by falling computer prices and must do more to cut costs to bring it back to operating profitability, one source said; the reorganisation would affect Olivetti’s office and systems division, where margins are very thin and overheads are high, and would also aim to cut the bureaucratic burden on the company, concentrating the administrative functions into new centres to serve several subsidiaries, the sources said.
