Work Force Cut by 35 at Alpha Microsystems

TIMES STAFF WRITER

Alpha Microsystems, a maker of business computer systems, said Thursday it has cut 9% of its work force, or 35 people, as part of a restructuring to reduce costs in the face of a downturn in the minicomputer market.

John S. Cain, president of Alpha Microsystems, said the company will also close its PICK operating system product research and development unit in San Jose and move the staff of 10 employees to the firm's Santa Ana headquarters.

As another part of the restructuring, the company will combine its sales staffs for three different product lines into a single marketing group headed by Douglas Tullio, executive vice president of the company.

The company will also combine elements of its international sales force with the domestic sales group. Cain said the company would attempt to further reduce operating costs by implementing stronger expense controls.

"We're in the minicomputer business, and for years it has been under attack from the top by cheaper mainframe computers and on the bottom by improved personal computers," he said. "This restructuring allows us to more tightly focus our efforts on strengthening our competitive position. We continue to offer all products at competitive prices."

Cain said he could not forecast how the restructuring will affect the company's earnings for the current quarter.

For the first quarter ended May 27, the company reported a loss of $2.4 million on sales of $13.5 million, compared to net income of $579,000 on sales of $14.1 million during the same period last year.

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