Still struggling to make some sense of Michael Blumenthal’s brutal banging together of two hopelessly inappropriate merger partners, chief executive James Unruh announced on Friday that Unisys Corp would dismantle its matrix management system and reform itself as three separate businesses, with the aim of improving profit and revenue growth next year. The changes will not come without cost: the workforce will be reduced and it will take a significant 1995 fourth quarter charge for the restructuring. The three units will be a computer systems business, an information consulting and integration services company, and a global support services business, each with its own sales force. The last covers not only maintenance but also desktop services, network integration and related services. Maintenance, 65% of the business last year from over 80% in 1990 is forecast to fall to 30% in 1998. Unisys aims to cut at least $400m from its current cost structure by the end of next year through cuts in administrative costs, facility consolidations and personnel reductions. The exact number of job cuts has not yet been determined. The restructuring is intended to enable the three units to compete more effectively and react more quickly to growth opportunities. The new structure will enable the company to explore options such as complementary acquisitions, new partnerships and other alliances that can enhance revenue growth and strengthen core competencies, Unisys said.
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