Tandem Computers Inc followed up IBM Corp’s shocker of a write-off by taking stunning $451m in retructuring charges against its third quarter figures – in a period when turnover was only $377m, for a loss after charges for the period of $549m. Tandem says it expects to cut its workforce by about 15%, 1,600 to 1,800 people, over the next 12 months, and that there may be another loss in the fiscal fourth quarter. The company also set an across the board pay cut of 5% and reduced benefits in what it says will be a permanent shift in its salary structure. It is cutting jobs at its Tandem Telcommunications division, at Ungermann-Bass Inc and at its European operations, and expects 700 people to leave the payroll this quarter. Tandem says that with the restructuring it has an operating plan for greatly enhanced profits, assuming revenue growth of only some 5% next fiscal.Rob Hoogstraten, who was in charge of day to day operations, has left the company, and he has been succeed by Jack Chapman.Ralph Ungermann, on medical leave recuperating from major spinal surgery, has resigned as chief executive of Ungermann-Bass.
