Unisys Corp ended yet another disappointing year with news that employee attrition is still not over, and another whopping 8.5% of jobs worldwide are to go. That adds up to 4,000 more people out of work, and the move will cost the company between $175m and $225m pre-tax against profits for its fiscal first quarter. The jobs are all in the company’s once core hardware business, where profit margins have dwindled in recent years, driving the company to seek greener pastures in the consultancy and services business. The lay-offs will be spread equally throughout the US and overseas operations, which have a combined staff of 46,900; employees will be given 30 to 60 days’ notice in the US and more time overseas. Unisys says that over the two years 1994 and 1995, employment in its services operations will grow by 2,000. The restructuring is intended to generate annual savings of at least $200m by the end of 1995 and bring the cost structure more in line with that of a services-oriented firm.The compa ny says financial performance this year has been disappointing as its traditional hardware sales and maintenance business has slowed and as profits at its European operations have declined. Its information services business grew 19% in 1993 and 22% in the first nine months of 1994 to become its biggest and fastest growing sector: it now accounts for 25% of turnover.
