Packard Bell NEC to Cut Jobs, Close 2 Plants

Packard Bell NEC Inc. will close two plants and slash 400 jobs, or 5% of its work force, in an effort to cut costs and turn around the falling market share at the personal computer maker. Packard Bell said its factories in Fife, Wash., and Boxborough, Mass., will close, and the notebook computer, sales and service groups and most of the engineering group based at those sites will be shifted to the company’s headquarters in Sacramento. The move is part of an effort to consolidate operations at the world’s fifth-largest personal computer maker, which was created by the 1996 merger of Packard Bell Electronics, NEC Corp.’s PC business and Groupe Bull’s Zenith Data Systems. “Consolidating operations is a natural step as sales are below expectations,” said analyst Aaron Goldberg of ZD Market Intelligence. Packard Bell NEC expects to add 300 jobs in Sacramento when the transition is completed later this year.