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April 21, 1994

DATA GENERAL TO CUT ANOTHER 1,000, BUT SALES UP AT LAST

By CBR Staff Writer

Following its second quarter loss of $48m (page seven) Data General Corp says it will be cutting its workforce still further, laying off about 1,000 between now and October, the end of its fiscal 1994 year. The company expects to have between 5,500 and 5,700 employees by then, down from 6,550 at the start of its fiscal year. Sales of Data General’s proprietary systems were just 14% of total turnover in the second quarter, down from 29% a year ago. The one glimmer of encouragement in the figures is the fact that for the first time for many quarters, the company is back on a growth tack at last, with turnover up 6% in the second quarter. Product revenues were $184m compared with $167m a year ago.

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