Unisys Restructures to Cut $225 Million in ExpensesBy Lawrence Walsh | Posted 2008-12-23 Email Print
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Unisys, one of the largest solution providers, is struggling under the weight of the recession. As part of its restructuring, it will lay off 1,300 employees and cease matching contributions to 401(k) plans.
Unisys, one of the largest solution providers in the world, announced Monday that it will be aggressively reducing jobs and employee benefits in an effort to save more than $225 million annually.
The cuts come as Unisys’ stock struggles to regain its footing. It’s currently trading below $1 per share. No specific reason was giving for the cuts, but observers say Unisys is among the IT services organizations feeling the pain of the recession as big financial services and government contracts dry up or get curtailed.
Unisys CEO Ed Coleman said the restructuring is designed to reduce costs and focus the company’s limited resources more effectively to drive higher revenues and profits.
The immediate action will result in Unisys trimming up to 1,300 jobs, ceasing matching contributions to employee 4019k) plans and discontinuing salary increases slated for 2009. The 401(k) cuts alone will save the company $50 million annually.
Unisys, which had 2007 revenues in excess of $5.6 billion, provides a variety of IT reselling, system integration and IT services. It partners with Cisco Systems, Dell, EMC, IBM, Intel, Microsoft, Oracle, NEC and SAP, among others. It also manufactures its own server line.