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March 2, 1987

BACK TO BASICS AS DATAPOINT SLASHES US WORKFORCE 35%

By CBR Staff Writer

In the wake of rapidly deteriorating conditions in its core businesses, Datapoint Corp has set a drastic downsizing of its operations and is cutting its US workforce by 35% and the manufacturing force in Taiwan and South Korea by 13%. That adds up to a dismissal of 786 employees, bringing its worldwide workforce down to 2,700. It is also taking a $56.8m charge with its second quarter figures (see page 3 for full details). It plans to de-emphasise several of its product lines and will concentrate on the new 40- to 150-user multi-80286-based Starship II system announced in October (CI No 547). It will also set up a telemarketing force.

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