Conference 7.286::atarist

801.0. "Layoff at Atari U.S." by QARRY::BHAMILTON (Buzz Hamilton) Mon Mar 19 1990 13:29

This is a special Z*BREAK news flash from

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         The Weekly ATARI NEWS FIRST Online Magazine!
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March 16, 1990:

ATARI CORPORTATION LAID OFF 15% of ALL U.S. EMPLOYEES,
EFFECTIVE AT 5PM PACIFIC TIME TODAY.

This cutback and layoff is NOT a temporary measure for those 
who received their termination notice at the close of business 
today in the Sunnyvale, California offices of Atari.  No 
expectation of callbacks in the foreseeable future was extended to 
the employees.

The layoffs occurred at the service level of all departments, but 
particularly hard hit were Accounts Payable and Credit, losing 50% 
or more of their staff.

Of the "Name" people that most of the public has any contact with, 
there were no terminations.  Popular figures such as Bob Brodie, 
Charles Cherry, and others were not directly affected.  
Additionally, no changes at the executive level were made public.

Conjecture by those near ATARI is that the cutbacks are due to the 
fact that Atari simply has no product ready for immediate sale, 
and that the bulk of those laid off had little to do that is 
essential to the current level of U.S. Operations.  The fact that 
the upper level employees were spared gives some reason to expect 
that this is not a long-term reduction in overall operation, but 
more an immediate action for an immediate situation.

CEO of Atari, Sam Trameil, was unavailable for comment or for 
employee negotiation today, having left the USA for computer shows 
in Europe earlier in the week.

Z*NET will have more on this story as it develops this week... 
look for details in the next Z*NET ONLINE MAGAZINE, issue #513, 
available starting Friday, March 23, 1990.  And, as usual, Z*NET 
will bring you ATARI NEWS FIRST.

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Copyright 1990 by ROVAC INDUSTRIES of Middlesex, New Jersey.
Reprint permission granted as long as the entire text is quoted 
and Z*NET is credited.

    How can I get a copy of Z*NET Online Magazine?
    
    Regards,
    	    Steve.
    

    see note 364.*