News Burst: Data General reorganises, lays off 400

Data General said today it will lay off about 400 people and take a $125m (£76.20) charge in the third quarter as part of a reorganisation.

The company, which makes servers and storage products, said it will focus on high-end enterprise products. It expects to save $50 to $55m annually from the reorganisation.

Data General's Aviion server division will now focus on the Windows NT server and the high-end Unix markets. NT sales now account for about 60 percent of the company's total Intel-based Aviion sales. In April, Data General warned investors that slow sales of its Clariion disk array products would hurt revenues, and later declared a $4.5m, or nine cents per share, loss. Analysts surveyed by First Call were expecting the company eight cent a share loss.

Data General closed Friday up $0.25 at $15.25.