Rossignol: >> Now if Palmer decided to do some trimming... << A start perhaps?
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Digital tightens its belt
By Margaret Kane, ZDNN
02.24.98 9:52 am ET
Digital Equipment Corp.(DEC) has instituted
a hiring freeze and put in place cost-cutting
measures that go as far as restricting the use
of cell phones.
Company spokesman Dan Kaferle said today that individual business
heads sent out notes or talked with managers last week about "efficiently
using resources."
The cost-cutting moves are directly aimed at shoring up the company's
forthcoming quarterly numbers, Kaferle said, adding that the moves
were not related to the company's pending acquisition by Compaq
Computer Corp.(CPQ)
"The business we're in is extremely competitive and we're always striving
to keep costs in line," Kaferle said. "This is an ongoing goal to make
sure every dollar we spend builds the business and serves customers."
In addition to the hiring freeze, the cost-cutting measures include:
limiting the use of cellular phones to employees in sales and
service;
suspending training except for ongoing degree programs and
contracted training;
suspending brand-related advertising;
canceling external business meetings that do not include
customers.
"All these components are well thought out, and the balance between the
effect on the business and certain areas is considered," Kaferle said.
Digital, of Maynard, Mass., has struggled financially for some time,
although it pulled itself into the black last year. However, the sale of its
semiconductor operations to Intel Corp. has hurt sales of its Alpha
systems because of customer concerns about the future of that chip.
In addition, many analysts have said that Compaq may only be
interested in Digital's services business, which has done fairly well. There
has been widespread speculation that Houston-based Compaq will
eliminate many Digital divisions, particularly its desktop PC business.
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Regards,
Joe... |
