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Unisys Restructures to Cut $225 Million in Expenses

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 […]

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Lawrence Walsh

Dec 23, 2008

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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.

Unisys Restructures to Cut $225 Million in Expenses

Lawrence Walsh

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