Data General Corp yesterday revealed a major restructuring programme that has caused it to take a $53.8m charge with its third quarter figures, leading to a loss for the period of $65.1m or $2.40 per share, against a loss of $2m last time, on sales slightly down at $313m – full figures tomorrow. The restructuring is designed to restore the company to a solid level of profitability for its 1988 fiscal year that begins in September. The cost reduction program includes the consolidation of manufacturing, field engineering and other facilities for greater efficiency, and involves elimination of about 950 jobs and the closing of three major facilities – Data General says its remaining facilities will be sufficient to support growth for the foreseeable future. It will also work to stimulate revenues by increasing sales and marketing initiatives, by further expanding its sales force and by continuing a high level of research and development. Research and development expenditures have risen by 10% over last year. The workforce reduction will be accomplished by combining job functions and eliminating certain jobs. The jobs are in most areas of the company. Some manufacturing operations will move from Southboro, Massachusetts to Portsmouth, New Hampshire and other manufacturing locations. Field Engineering headquarters will be transferred from Milford, Massachusetts to Southboro, and financial and administrative functions will be transferred from Hooksett, New Hampshire to Westboro and Southboro. Also, the Industry Marketing Group, which has been headquartered in Denver, will be consolidated within marketing functions in Westboro. The Milford, Hooksett and Denver facilities will all be closed.
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