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P.M. BRIEFING : Prime Computer to Lay Off 2,500

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From Times wire services

Prime Computer Inc. today said it will lay off 2,500 employees, or about 20% of its work force, due to a restructuring of the company into four units.

Prime was acquired in August for about $1.13 billion by New York investment firm J. H. Whitney & Co. after a protracted, nine-month battle for control of the Natick-based computer maker.

In a statement, Prime said the layoffs will occur mostly in the United States. Half of the U.S. layoffs, whose number was not specified, will be in Massachusetts, the company said.

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Prime said it will be reorganized into four profit centers: the computervision business unit, the minicomputer business unit, the customer support business unit and the international business unit.

Prime posted a net loss of $18.9 million in the second quarter, compared with a $76.2 million profit in the same period last year.

Tustin, Calif.-based MAI Basic Four Inc. launched a hostile bid for Prime last November and the long battle cut into Prime’s earnings, sapped customer confidence and drove off some valued employees.

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