Compaq May Cut 15,000 Digital Jobs

Compaq Computer Corp. will cut about 15,000 jobs at Digital Equipment Corp. as part of its planned $9.55-billion acquisition of the computer maker, people familiar with the deal said. Compaq will take a restructuring charge of $1.5 billion to $2 billion after completing the purchase, according to filings with the Securities and Exchange Commission. The reported cuts would represent about 27% of the 54,000 employees at Digital, which has reduced its staff from a high of 127,000 in the late 1980s as it struggled for profit. Compaq employs 32,500 people. Digital spokesman Dan Kaferle declined to comment on the job cuts, as did Compaq spokesman Jim Finlaw. Digital employees have anticipated job cuts since the acquisition was announced in January, and resumes have been flooding Boston-area computer firms, analysts said. Many Digital employees do not want to make the move to Houston, home of Compaq. Digital plans to have a meeting on June 11 for shareholders to vote on the proposed deal. On the New York Stock Exchange, Compaq rose 69 cents to close at $31.25; Digital rose 69 cents to close at $58.69.