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Ibm Raises The Ax Again


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IBM RAISES THE AX AGAIN

Since its 1986 peak of 406,000, IBM's payroll has shrunk by almost 60,000, as many employees have opted for lucrative early-retirement plans and other incentives offered by the beleaguered computer giant. But IBM seems determined to slash costs even more. It's expected in early December to reveal plans for cutting as many as 20,000 more people in 1992.

Big Blue's intent is to do more with less. Wall Street reckons IBM's 1991 revenues will be down 5.5% from last year, generating earnings per share of only about 18~, versus $10.50 in 1990. But the new cuts, if they materialize, might cut costs by $1 billion a year. But iffy demand for mainframes still clouds the outlook for 1992.EDITED BY HARRIS COLLINGWOOD


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