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Conference 7.286::digital

Title:The Digital way of working
Moderator:QUARK::LIONELON
Created:Fri Feb 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:5321
Total number of notes:139771

1918.0. "WSJ: 3000 take SERP" by MR4DEC::GREEN () Mon Jun 01 1992 13:01

From: [email protected]
Subject: Some 3,000 Digital Workers Seen Accepting Buy-Out Offer
Date: Mon,  1 Jun 1992 06:06:29 -0400 (EDT)

  

  By John R. Wilke  

  Digital Equipment Corp. will announce today that about 3,000 employees
accepted an early retirement buy-out, company officials said, The Wall
Street Journal reported.  

  That's a larger-than-expected response to the buy-out, which was offered
to 7,000 employees over the age of 50. Management had hoped to get a
third of those to accept.  

  Digital, which has worked to cut its payroll for two years in the face
of losses and slow sales, had about 116,000 employees at the end of March.
With the latest buy-out and other cuts, the total will be about 112,000
by June 30, when the company's fiscal year ends.  

  The cost-cutting and restructuring are far from complete. Digital executives
have said they intend to cut at least another 10,000 jobs in the coming
year and to post a charge of as much as $1 billion in the current quarter
to pay for the cutbacks.  

  The early retirement program has cut deeply into Digital's executive
ranks. A half-dozen vice presidents filed papers to accept the buy-out,
including Albert E. Mullin, corporate relations; George A. Chamberlain,
marketing finance; William J. Heffner, voice and video; Henry J. Crouse,
strategic relations; and James Cudmore, operations. Robert C. Hughes,
vice president for U.S. sales, announced earlier that he was leaving
the company.  

  Digital officials also said that Domenic J. LaCava, a corporate officer
and vice president, won't be leaving the company. LaCava, one of Digital's
better-known executives, had been expected to leave in the wake of a
reorganization that reduced his responsibilities.  

  LaCava did file for early retirement, but he was persuaded to stay,
a person familiar with the discussions said. "His skills are valued.
We mounted a full-court press to keep him," the person said.  

  A spokeswoman said none of the executives was available for comment
and declined to confirm that any of those named would be departing. 


  Digital also has lost one of its top system designers, Richard Witek,
who along with Richard Sites is credited with designing the alpha-chip
architecture that the company is counting on for its next generation
of computers. Witek, a 15-year veteran of Digital, took a position with
Apple Computer Inc.  

  The results of the early retirement effort are likely to be welcome
news to analysts who have long criticized the company for moving too
slowly in reducing its payroll. While Digital has managed to cut 20,000
jobs since its peak employment of 126,000 in December 1989, it added
back 10,000 jobs from two European acquisitions last year.

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1918.1AIMHI::BOWLESMon Jun 01 1992 13:533
    FWIW......
    
    LiveWire has an article that says the number is 3700.
1918.2LIVEWIRE ArticleCVG::THOMPSONRadical CentralistMon Jun 01 1992 14:4035
	U.S. News                         LIVE WIRE

                       Voluntary retirement program ends

  The voluntary Special Early Retirement Program (SERP) has had a significant 
  impact on Digital's workforce.  Some 3,700 employees took advantage of the 
  program, which ended May 29.  It was offered to about 7,000 U.S. employees 
  who, as of May 31, were at least 50 years old with five or more years of 
  service, or at least 60 with one or more years of service to Digital.  

  Just about everyone I've talked with said they're leaving feeling very 
  positive about the experience," said David Landry, U.S. Transition manager. 
  "The majority of employees who elected SERP would not have been eligible for 
  the normal early retirement policy.  Under SERP, they received an improved 
  pension benefit, lifelong medical and dental coverage, continued life 
  insurance, and outplacement assistance."  

  Annette Albright, U.S. Employee Relations manager, said a Retiree Relations 
  Program Office has been created in response to the needs of our expanded 
  retiree population.  "We are saying goodbye to many colleagues and friends 
  who have dedicated years to Digital's success," she said.  "We wish them 
  success in their new pursuits, but we also want them to have lasting bonds 
  with the company.

  "All retirees are potential good-will ambassadors for Digital.  We want to 
  establish a contact place within the company through which we can communicate 
  with retirees to our mutual advantage," Annette said.  Each retiree received 
  a watch and a gold badge which enables them to use company facilities.

  A small number of SERP retirees will be finishing critical work at Digital as 
  external contracts or consultants, according to Dick Farrahar, vice president,
  Personnel.

  "They will be working to close out business that was important to Digital and 
  most of their work will be finished in a month or two," he added.
1918.3DECnews on SERP and corp officialsMR4DEC::GREENTue Jun 02 1992 10:48120
Date: Mon, 1 Jun 92 08:41:43 PDT
Lines: 144

||||||||||||  DEC n e w s  ||||||||||||||||||||||||||||||||||||||||||||||||
                                              Digital Equipment Corporation
                                          Maynard, Massachusetts 01754-2571
Editorial contact:

Dallas Kirk
(508) 493-4562


                      3,700 ELECT TO RETIRE AT DIGITAL


MAYNARD, MA -- June 1, 1992 -- Digital Equipment Corporation announced 
today the conclusion of its U.S. Special Early Retirement Program.  Of
the 7,200 eligible employees, 3,700 accepted the offer to retire.  Kenneth 
H. Olsen, President, stated, "Digital has grown into an industry leader due 
in a large measure to the contributions of these employees.  We are pleased 
that they will now be able to bring their strong experience to new business 
endeavors or devote more time to personal pursuits."

Among those retiring are seven corporate officers.  They are:

George A. Chamberlain, 3rd   A 24 year employee of Digital, Chamberlain
Vice President, Marketing    began his career as manager of the Treasury
Finance			     Department.  Other positions held over the
			     years include: manager of Corporate Informa-
			     tion Services, assistant treasurer, treasurer,
			     vice president of finance for Manufacturing,
			     Engineering, and Marketing. 

Henry J. Crouse		     Crouse joined Digital in 1959 as assistant to 
Vice President,		     the president.  Since that time, he has held
Strategic Relations	     management positions within the company,
			     including purchasing manager and corporate
			     manager of Administration, group manager for
			     External Manufacturing, vice president of
			     External Resources, and vice president of 
			     Manufacturing-Europe.  In May of 1988, Crouse
			     was selected as the startup president of the
			     Open Software Foundation.

James G. Cudmore	     Cudmore began his career at Digital in 1960 as
Vice President,		     circuit design engineer.  He has held 
Operations Staff	     engineering, manufacturing and marketing
			     management positions in such areas	as the
			     semiconductor development/manufacturing
			     group, large scale integrated circuits group,
			     OEM product line, low end engineering and 
			     product operations.

William J. Heffner	     Heffner is a 17 year Digital employee.  He 
Vice President,		     began his career as group software engineer-
Image, Voice and	     ing manager and served as the head of the 
Video Products		     32-bit software development effort, which
			     produced VMS and many other software products.

Robert C. Hughes	     Hughes has held several sales and marketing
Vice President,		     management positions for Digital since 1976.
U.S. Sales		     His past responsibilities have included vice
			     president of National Accounts, vice president
			     of Industry Marketing, vice president of the
			     Office and Information Systems Product Group,
			     the Telecommunications Group, and the Small
			     Business Group.  He has also held positions as
			     regional sales manager and headquarters sales
			     program manager.

Albert E. Mullin, Jr.	     Mullin joined the company in 1972 and was
Vice President,		     responsible for Digital's investor, govern- 
Corporate Relations	     ment and community relations.  He is a member 
			     of the board of directors of the Computer and
			     Business Equipment Manufacturers Association,
			     the Associated Industries of Massachusetts, 
			     the Conservation Law Foundation, the Pine
			     Street Inn, and the board of trustees of the 
			     Massachusetts Taxpayers Foundation. 

Richard H. Yen		     Yen joined Digital in 1972 as general manager,
Vice President,		     Taiwan.  His most recent position included
Far East Manufacturing	     responsibility for the company's Taiwan design
			     engineering operation, the Tokyo Sourcing and
			     Purchasing Group, and manufacturing facilities
			     in Taiwan, Singapore, and Hong Kong.


The Special Early Retirement Program provided 26 weeks of pay in a lump sum 
and added 5 years of service and 5 years of age to the normal retirement 
plan.  John F. Smith, Senior Vice President of Operations, said, "We are 
extremely proud of all of our retirees.  They will continue as valued 
members of the Digital family.  A new Digital Retiree Program Office has 
been opened that will facilitate the involvement of our retirees in our 
future."

Henry J. Crouse, a 33 year employee, said, "I feel fortunate to have had
a varied and rich career at Digital.  It is a great company which respects
the individual and appreciates their contributions."

Digital Equipment Corporation, headquartered in Maynard, Massachusetts, is 
the leading worldwide supplier of networked computer systems, software and 
services.  Digital pioneered and leads the industry in interactive, 
distributed multivendor computing.  Digital and its partners deliver the 
power to use the best integrated solutions - from desktop to data center - 
in open information environments.

                                   ####

CORP/92/666
============================================================================
DECnews is sent as a courtesy to members of the press.
For subscription information please contact:
  David Price, USS Press Relations, Digital Equipment Corporation
  Voice:603-884-3467   FAX:603-884-3467   Internet:[email protected]
============================================================================




1918.4Is Rich Witek Really Gone?BTOVT::SOJDA_LTue Jun 02 1992 12:2315
RE: .0 (Wall Street Journal article)
    
>>  Digital also has lost one of its top system designers, Richard Witek,
>> who along with Richard Sites is credited with designing the alpha-chip
>> architecture that the company is counting on for its next generation
>> of computers. Witek, a 15-year veteran of Digital, took a position with
>> Apple Computer Inc.  
    
    Is it true that Richard Witek has left Digital for Apple?  If so, did
    he take the SERP package or just leave on his own?
    
    I've seen no other confirmation of this other than the WSJ.
    
    Larry
    
1918.5CVG::THOMPSONRadical CentralistTue Jun 02 1992 12:498
>    Is it true that Richard Witek has left Digital for Apple?  If so, did
>    he take the SERP package or just leave on his own?

	Yes, it's true. I heard about it some time ago. I don't believe he
	SERPed. He's not in ELF BTW. Not that that is proof but it is a data
	point.

			Alfred
1918.6RANGER::CANNOYPerpendicular to everything.Tue Jun 02 1992 12:501
    Rich has been at Apple for a while I think.
1918.7CREATV::QUODLINGKen, Me, and a cast of extras...Tue Jun 02 1992 14:047
    Well, a month or so, Notably he went to apple in Austin TX, which is
    where Apple are trying to switch over to the IBM Hardware Platform.
    Associate in Apple tell me that they are having a devil of a time doing
    it. 
    
    Peter Q.
    
1918.8SIMON::SZETOSimon Szeto, International Sys. Eng.Tue Jun 02 1992 22:387
    re .4:  Rich Witek is too young to be eligible for SERP.
    
    Apparently he's coming back for a farewell party with his friends.
    I guess his kids must be finishing the school year before going to
    Texas.
    
    --Simon (not quite old enough to SERP)
1918.9Martin Minow SERPed to Apple though.STAR::PARKETrue Engineers Combat ObfuscationWed Jun 03 1992 10:270