The ill-fated Stirling, Central plant closed by Wang Laboratories Inc and taken over three years ago by Compaq Computer Corp as a repair and service centre, is to close again with the work going to Erskine. Despite the strong reception for the Prolinea machines, Compaq does not believe it is out of the woods yet and it is cutting 1,000 employees or 10% from its worldwide workforce over the next few months, with 700 to go this month, including 100 in Scotland. The cuts are despite what it says will be record turnover and unit shipments for the third quarter just ended, and operating profits for the quarter comfortably above 1992 third quarter levels. But it will take an $85m third quarter redundancy and restructuring charge, to be offset by an $86m gain from sale of its shares in Conner Peripherals Inc. It says it is cutting its workforce in anticipation of a continuing intensely competitive market environment. It also says it has received new supplies of needed parts and should meet current demand on most products during this quarter.
