Unisys To Cut 1,400 Workers

The computer-services company, which employed 37,000 workers worldwide as of July, said in a statement Wednesday that the cost-cutting would result in an after-tax charge to earnings of about $63 million, or 19 cents per share, in this year's third quarter.

Unisys spokeswoman Elizabeth Douglass declined to comment on where the cuts would take effect.

The company also said it would have an after-tax benefit in the third quarter of about $70 million, or 21 cents per share, related to the settlement of audit issues dating from the mid-1980s.

The net result of the tax benefit and the cost reductions would be a benefit of $7 million, or 2 cents a share, in the third quarter, company officials said.

Unisys has struggled to achieve growth as corporate spending on information technology has been sluggish.

The company has said that it expects to report earnings of 8 to 12 cents a share, excluding pension accounting, for the third quarter. In the third quarter last year, the company reported a net income of $56.2 million, or 17 cents a share.

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