Unisys Wednesday announced it plans to cut 1,400 jobs, primarily in general and administrative areas, and consolidate its office space worldwide. The cuts represent 3.8% of the company’s staff of 37,000.
Unisys Wednesday announced it plans to cut 1,400 jobs, primarily in general and administrative areas, and consolidate its office space worldwide. The cuts represent 3.8% of the company’s staff of 37,000.
Unisys expects to save around $70 million a year as a result of the move. However, the changes will result in a one-time, after-tax charge of around $63 million in the third quarter of 2004, Unisys said.
At the same time, it also announced that it has netted a refund of about $30 million in settlement of U.S. tax audit issues dating from the mid-1980s. The settlement means the company can adjust its reserves for tax liabilities, allowing it to record an after-tax benefit of around $70 million in the third quarter, it said.
Unisys still expects to meet its previous guidance for the third quarter, it said Wednesday. In July, it predicted third quarter revenue will remain stable compared to last year’s total of $1.45 billion, albeit with a slight decline in revenue from its technology business sector, which accounts for around one-sixth of total revenue. Excluding the impact of pension accounting and the charges announced Wednesday, Unisys expects to report earnings per share for the third quarter of between 8 and 12 cents. In the third quarter of 2003, it reported earnings per share of 17 cents. The Bluebell, Penn., company will release final third-quarter earnings on Oct. 14.
