Packard Bell NEC to cut US workforce by 20 per cent

Cost-cutting measure follows poor year

Packard Bell NEC has confirmed its intention to axe between 750 and 1000 jobs by the end of the year. However, the company said its European operation will unaffected -- the cuts will be made solely in the US, accounting for up to 20 per cent of the workforce. The decision was made as part of a major effort to cut costs, said a Packard Bell NEC spokesman. "This is a very tough thing to do," he said. "But as a company, it's the right thing to do." The cuts come after a difficult 18 months for Packard Bell, a period that has seen the resignation of founder Beny Alagem, NEC taking control of the company and merging it with its own operations, and a collapse in US marketshare from 20.4 per cent in August 1997 to 9.1 per cent for the same month this year. The news also follows the company's decision to pay $3.5 million to settle a lawsuit filed against it by the US government (see Packard Bell NEC settles whistleblower suit). ® Click for more stories

Sponsored: 10 ways wire data helps conquer IT complexity