» Business » Unisys to cut 1,300 jobs worldwide; suspends hikes

Unisys to cut 1,300 jobs worldwide; suspends hikes

Source: PTI
December 23, 2008 13:05 IST
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IT services and solutions provider Unisys Corporation has said it will slash as many as 1,300 jobs across the world and plans to forgo any salary hike next year in most of the countries where the company operates.

"The headcount reductions have begun and will continue into 2009... the company also plans to forgo 2009 salary increases in most of the company's markets," Unisys Corporation said.

Unisys said it is exploring a wide range of cost-reduction options and that actions currently underway are expected to reduce its annual cost structure by more than $225 million.

The cost-reduction actions -- led by new Unisys chairman and CEO Ed Coleman -- are part of an overall programme to simplify the company's business structure, concentrate its resources more effectively and drive improved market success and profitability, Unisys added.

The initial cost-reduction actions are focused on reducing selling, general and administrative expenses and controlling or reducing labor costs across the board.

"The company plans to reduce its spending on third-party expenses, facility consolidations, head-count reductions and a suspension of company matching contributions to the US 401(k) plan, which had been costing about $50 million annually," the statement added.

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