Data General Corp, the Westborough, Massachusetts company that cut itself in half over the last three years (CI No 1,806) and thought it had turned itself around, has announced that it will cut yet another 1,000 jobs, reducing its workforce to just over 7,000, taking a $46m restructuring charge in its second quarter accounts. The second quarter figures, due April 23, are expected to show a trading loss – that’s before the restructuring charges are taken into consideration. The news follows a poor first quarter performance, when profits plunged 68% to $4m on sales down 5% at $295m. As previously reported, the company’s quarterly breakeven level is around $270m. Data General Ltd’s Peter Perriguo says that while sales of the Unix-based AViiON line have remained strong, winning new accounts, upgrade sales of the company’s proprietary MV machines have virtually frozen, as customers cease to upgrade under the ongoing recession. The outlook is depressing, but Perriguo says no further restructuring measures are planned. The research and development split between the company’s two hardware systems will continue unchanged, he said, implying that at this stage there is no plan to withdraw commitment from the proprietary line. The redundancies will be on a worldwide basis and will mainly affect administrative positions, the company said.
