Jobs Wither in Drought of Recession : Cutbacks: Novadyne Computer Systems eliminates 95 employees and reduces wages in major reorganization.
Novadyne Computer Systems Inc. said Monday that it has cut its staff by 11%, or 95 people, and reduced its employee compensation as part of a reorganization of its computer systems sales and repair business.
The reorganization divides the company into two main units and is designed to accelerate its transition from a computer service business to one that also sells business computer systems, Chairman Bert J. Novak said in a statement.
“The results will be improved service to our customers, faster response to our marketplace and greater efficiency in our operations,” he said.
The company cut its work force from 865 to 770. Affected employees were notified Monday, a spokesman said.
In February, the company indicated that it would reorganize because of the recession, saying it had expanded its sales and marketing divisions and cut back in other areas. On Monday, Novadyne said it also scaled back employee pay and benefits. The company did not provide any specifics.
A sales and sales-support unit will be run by Robert A. Garbutt, vice president of sales and marketing. An operations unit, which includes the computer repair business, will be run by Richard F. Heimann, vice president of operations.
Novadyne also realigned its national field repair operations into four geographic regions. Novak led an investment group that purchased Novadyne from McDonnell Douglas Corp. for $100 million in 1990.