Restructured Digital Reports $256 Million Loss; 5,500 Jobs Cut

Associated Press

Digital Equipment Corp. said today it lost $256.7 million in the final quarter of its fiscal year, citing $400 million in costs related to a restructuring that reportedly will reduce employment by about 5,500 workers.

Senior Vice President John F. Smith said the results reflect "the continuing economic slowdown that affects both U.S. and several other markets."

For its fourth quarter ended June 30, the company said it lost $2.11 a share on revenue of $3.4 billion, compared with earnings of $313.2 million, or $2.51 a share, on revenue of $12.7 billion for the same quarter in 1989.

"Increasing profit is the most important challenge the company faces," Smith said. "We are not satisfied with our operating results and will continue focusing on revenue growth and reducing our cost structure."

He said the company is reducing costs by identifying positions that are no longer needed, either because of changes in technology or business practices.

Copyright © 2019, Los Angeles Times
EDITION: California | U.S. & World