Unisys to cut 1,300 jobs, rein in pay increases
The Blue Bell technology firm hopes to save more than $225 million a year.
Unisys Corp. said yesterday that it would cut about 1,300 jobs worldwide and that employees would forgo salary increases in most markets to save more than $225 million a year.
The Blue Bell technology-services company had about 30,000 employees as of Dec. 31, 2007.
Unisys expects to record a fourth-quarter expense of $80 million to $85 million, according to a statement yesterday from the company.
Unisys said its initial cost-reduction actions were focused on cutting general and administrative expenses and on controlling or reducing labor costs across the board.
The company also said it was suspending its matching contributions to the U.S. 401(k) plan, which had been costing about $50 million annually.
In October, J. Edward Coleman was chosen to succeed Joseph W. McGrath, who resigned as Unisys president and chief executive officer in September after a three-year tenure during which the company lost about $2 billion.