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Wang to Eliminate Up to 4,000 Jobs

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From Associated Press

Wang Laboratories Inc., which had trouble selling its own machines and will now sell computers made by IBM, announced plans Friday to eliminate up to 4,000 jobs, or nearly a quarter of its work force.

Wang’s announcement came a week after the struggling firm, a the pioneer in word processing equipment, said it will link up with International Business Machines. Under the deal, Wang will receive up to $100 million and in turn will sell IBM computers.

This arrangement prompted Wang to adopt a new corporate structure that will allow the company to cut costs significantly, said Richard Miller, chairman of the Lowell, Mass.-based company.

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During the next several months, Wang said, it expects to cut its payroll by 3,000 to 4,000 jobs worldwide; about half of the cuts will come in Massachusetts.

Wang employs about 17,500 people, with nearly 6,000 based in Massachusetts.

Frank Ryan, a Wang spokesman, said no further cuts were planned.

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