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Tuesday, 16 October, 2001, 09:23 GMT 10:23 UK
Unisys cuts 3,000 jobs as profits halve front page
Unisys: The outlook for the last three months of the year is gloomy
US computer services company Unisys plans to cut 3,000 jobs after its profits halved as customers delayed purchasing decisions.

Unisys chief executive Larry Weinbach
Larry Weinbach: Trade environment "highly uncertain"
Larry Weinbach, chairman and chief executive, said that following the 11 September attacks, customers in the airline, travel, financial services, and communications industries delayed planned information technology purchases.

The job cuts represent 8.1% of the workforce at Unisys, which will take a pre-tax charge of $200m over the next three months over funding the shake-up.

The company has 37,000 workers providing computer services and equipment for financial, transportation, communications and other companies and government agencies in 100 countries.

Outlook poor

Philadelphia-based Unisys said it would use early retirement incentives in reducing its employee count.

It reported a net profit of $20.9m for the three months ending 30 September compared with $42.9m a year before.

Revenue dropped 19% to $1.38bn.

The outlook for the October-to-December quarter was also downgraded.

"The current business environment remains highly uncertain as organizations reduce costs and review their spending priorities," Mr Weinbach said in a statement.

On Wall Street, Unisys shares fell to $8.90 in after hours trading, after closing up 0.53% ahead of the results.

The stock is down 35% since the beginning of the year.

See also:

15 Oct 01 | Business
Siemens cuts 7,000 more jobs
10 Oct 01 | Business
Motorola wields jobs axe again
05 Oct 01 | Business
Sun and AMD deepen tech gloom
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