newsbytes@clarinet.com (01/14/90)
SAN JOSE, CALIFORNIA, U.S.A., 1990 JAN 11 (NB) -- Anticipating a computer industry slump in 1990, the 91-store Businessland chain has started off the year by laying off five to seven percent of its 3,900 workers and by restructuring. The restructuring and layoffs should save more than $12 million a year, according to the company. "The moves we are announcing are in keeping with the realities of the market and long-term strategic priorities of Businessland," explained David Norman, chairman. "They will not impact the level and quality of technical support and service." Businessland estimates revenues in excess of $370 million in the second fiscal quarter ending December 31 and will take a write off of $1 to $2 million to cover the costs of the layoffs. Norman announced that he and senior executives have internally launched comprehensive new marketing plans and programs to improve margins. "We believe that improved margins from the sale of NetFrame, Next workstations, and Businessland Services, combined with savings from the restructuring and continued cost controls, will result in improved operating margins beginning in the March quarter." Another action will be the conversion of an unknown number of Businessland stores into ComputerCraft stores, the company's consumer rather than business sales storefronts. (Wendy Woods/19900111/Press Contact: Beverly Bird, 408- 437-4366)