Computer Industry Briefs

IBM Plans Charges Of Up to $2.5B . . .

IBM said it plans to take restructuring charges of up to $2.5 billion, primarily during the current quarter. That could result in a loss for IBM, which reported lower-than-expected results for the first quarter. Among the moves announced by IBM last week was a layoff of 1,500 workers at its microelectronics unit, which will decrease that operation's workforce by 7.5%.

. . . And Signs Disk Deal With Hitachi

IBM and Tokyo-based Hitachi Ltd. finalized a deal under which Hitachi will take control of IBM's disk drive operations. Hitachi will pay $2.05 billion for a 70% stake in a new joint venture and then assume full ownership after three years, the companies said. Talks about a separate deal to jointly develop storage systems and networking technology are continuing, they added.

Oracle Trims App Development Staff

Oracle Corp. disclosed that it cut 200 developers from its business applications unit, reducing the company's overall development staff by about 2%. The layoffs stemmed from a reorganization announced in March. CEO Larry Ellison said separately that Oracle expects to meet financial expectations for its fourth quarter ended May 31.

Microsoft, SEC Settle Accounting Charges

Microsoft Corp. and the Securities and Exchange Commission settled charges that the company violated accounting rules and misstated its profits in various quarters from 1994 to 1998. The SEC found that Microsoft committed multiple violations, but the company wasn't fined or forced to restate its earnings.

Copyright © 2002 IDG Communications, Inc.

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