Hurt by loss of Compaq Computer Corp’s product line and the dull conditions in the US personal computer market, Businessland Inc – which started the retail price war last year – is having to retrench. The company is to reduce its 3,900 worldwide workforce by 5% to 7%, implying that 195 to 270 people will be on the street, and attributes the cuts to a restructuring to take advantage of cost-efficiencies from new management information systems, centralisation of distribution and economies of scale. It also looks to save $12m a year. Analysts reckon that of the two white hopes brought in to plug the Compaq hole, the NeXT Computer System has been a slow mov er and the NetFrame server was late. It is also closing an undisclosed number of its 90 US stores as it converts to executive sales offices.
