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Prime Computer to Slash Work Force

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From Associated Press

Prime Computer Inc. announced Monday that it would lay off 2,500 employees, or nearly 20% of its work force, as part of a restructuring designed to put the company back on its feet following a 10-month anti-takeover battle.

The minicomputer maker also will divide its operations into four departments, or “profit centers,” said spokesman Joe Gavaghan.

The strategy by Prime, based in suburban Natick, Mass., is part of a plan to reduce the $1-billion debt it incurred when J. H. Whitney & Co., a New York investment firm, purchased the company and ended its battle with hostile bidder MAI Basic Four Inc. of Tustin.

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The layoffs, which will occur worldwide, will take place as each department adopts the restructuring plan, Gavaghan said.

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