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Prime Computer to Cut 10% of Its Work Force

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From Reuters

Prime Computer Inc. said today that it will reduce its worldwide work force by about 10% as part of a restructuring drive aimed at yielding cost savings of $50 million in 1989.

The move comes as the minicomputer maker is trying to fend off a hostile tender offer launched last month by MAI Basic Four Inc. Natick-based Prime said 1,200 jobs would be cut in the consolidation plan, which will take effect Jan. 3.

Prime said it expects the planned cost savings to contribute to improved operating results next year. “These changes are expected to result in savings of approximately $50 million in 1989,” said Prime President and Chief Executive Anthony Craig.

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Prime also said today that it will take a pretax charge against earnings for the fourth quarter and fiscal year ending Dec. 31 of between $40 million and $45 million as a result of expenses relating to the MAI offer.

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