Earlier this week, Wang Laboratories Inc reported fourth quarter net losses of $496.7m that included $441.6m restructuring charges and $24.9m from discontinued operations (CI No 1,479). Consequently, as part of a worldwide rationalisation initiated after the $423m loss last year and $715.9m this year, Wang UK is is introducing the second phase of a major restructuring programme. Called Operation Customer, the aim is to dismantle bureaucracy and streamline operations. Which sounds upbeat and positive given the depressing results, but the downside is 200 job losses from administrative and financial areas. The company says new procedures and technology will enable administrative functions to be performed automatically, and the sales force will be able to key in orders direct to the factory rather than fill in forms for other staff to process. The three main areas targeted for change are the order-build-ship-bill cycle, product development process, and service billing and technical support. Wang says that there will be greater responsibility delegated to those staff directly involved in the design, manufacture and selling processes, and it intends to shorten the time be-tween design and delivery. The company is confident that the rationalisation will have far-reaching effect, and it is forecasting profitability for 1991. In the US, the company’s everything-must-go asset sales programme has enabled Wang to reduce its debt to a mere $30m, and the company expects to be able to eliminate even that in the near future.
