DIGITAL EQUIPMENT CORPORATION ANNOUNCES ITS INTENTION TO CLOSE MANUFACTURING FACILITIES IN SPRINGFIELD, MASS., AND BURLINGTON, VT.
DIGITAL EQUIPMENT CORPORATION ANNOUNCES ITS INTENTION TO CLOSE MANUFACTURING FACILITIES IN SPRINGFIELD, MASS., AND BURLINGTON, VT. MAYNARD, Mass., Oct. 29 /PRNewswire/ -- Digital Equipment Corporation (NYSE: DEC) informed its employees today that it intends to close its manufacturing facilities in Springfield, Mass., and Burlington, Vt. There will continue to be sales and services facilities in both cities. The process for the plant closings, which will affect approximately 320 employees in Springfield and 350 in Burlington, will be a gradual reduction of the workforce over the course of six months. It is expected that the process will be complete by April of 1993. The details for closing the plants were outlined today to employees in group meetings. Digital will offer the affected employees a number of benefits including a financial support package based on years of service to the corporation; continuation of medical, dental and life insurance for a specified period; and professional outplacement assistance. Edward B. McDonough, vice president, manufacturing and logistics for Digital, said, "The computer industry has been going through a period in which technology has advanced by orders of magnitude, increasing the efficiency with which products can be manufactured. "The movement of computing power to semiconductors; the shift in demand to high-volume, low-margin commodity products; and the decreased demand caused by a soft worldwide economy has left Digital, and other companies in our industry, with excess worldwide manufacturing capacity. For over three years, the corporation has been restructuring its manufacturing function to adjust to the new capacity needs by eliminating redundancies and divesting in areas where we cannot clearly differentiate ourselves in the market." McDonough continued, "Manufacturing will remain a core competency for Digital. Our goal is to position manufacturing capacity to best serve our customers worldwide and to optimize the utilization of our assets. It is on the basis of this strategic intent -- and not an issue of quality of work -- that the decision was made to close the Springfield and Burlington plants. Both plants and their employees have held an important place in Digital's history." The disposition of the two sites, which are owned by Digital, has not yet been determined. The corporation is currently working with state and local governments, as well as outside organizations, to find external alternatives for the plants. Digital Equipment Corporation, headquartered in Maynard, Mass., is the leading worldwide supplier of networked computer systems, software and services. Digital pioneered and leads the industry in interactive, distributed and multivendor computing. Digital and its partners deliver the power to use the best integrated solutions -- from desktop to data center -- in open information environments. -0- 10/29/92 /CONTACT: Nikki Richardson of Digital Equipment 508-493-6369/ (DEC) CO: Digital Equipment Corporation ST: Massachusetts IN: CPR SU:
DD -- NE011 -- 6512 10/29/92 11:00 EST
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|Date:||Oct 29, 1992|
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