P. M. BRIEFING : Digital Equipment Delays Raises
<i> From Times wire service</i> s
MAYNARD, Mass. —
Digital Equipment Corp., facing a decline in earnings, said today that it will delay all salary increases for its 73,500 employees in the United States.
The salary freeze will go into effect July 2, the beginning of Digital’s fiscal year, and will be re-evaluated in late September or October, spokeswoman Nikki Richardson said.
“Because business is down in the U.S. for Digital as well as for computers in general, we need to control costs in order to improve profitability,” Richardson said.
The computer maker reported earnings in the quarter ending April 1 of $256.4 million, down from $305.1 million a year earlier. Operating revenues were $3.12 billion, up 11% over the same period a year earlier.
