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June 2, 1997updated 05 Sep 2016 12:26pm

TELXON CUTS BACK IT AIRONET UNIT AND BRINGS PEOPLE CLOSER

By CBR Staff Writer

Akron, Ohio-based handheld terminal specialist Telxon Corp has decided to cut back and consolidate its operations. This follows on the heels of an ugly set of year-end results just over a week ago, but the company says it was planning this move months before the results were known. The company has closed the Toronto, Canada facility of its Aironet Wireless Communications Inc unit, which manufactures wireless LAN products incorporating spread spectrum radio technology. It said the Akron workforce will be increased by about 30 to compensate, but refused to say what the net difference would be overall. The company is also about to relocate some of its product development, customer support and Telxon Holdings operations to Houston, Texas, to be nearer to its existing service center and manufacturing operations. The company said the distance between Ohio and Texas was too great to deal with problems that arose after the product left Akron. About 40 people in total will lose their jobs as a result of the changes over the next 12 to 18 months, and the company expects to save around $10m annually. Telxon employs about 1600 people worldwide, and about 1200 in the US. But the company adds that the changes are not expected to affect its targeted operating earnings for fiscal 1998.

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