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Compaq Details Plant Closings

June 29, 1998

HOUSTON (AP) _ Compaq Computer Corp. is closing six plants overseas and eliminating 5,000 jobs as part of a previously announced cost-cutting drive that follows its acquisitions of Digital Equipment Corp. and Tandem Computers.

The announcement Monday provided the first details of the cuts, which will total 17,000 jobs of the companies’ 85,500 total payroll. Most of the cuts will come at Digital, which had 54,000 employees when it was acquired by Compaq earlier this month.

Two plants will be closed in Scotland and one each will be shuttered in Brazil, China, Singapore and Taiwan. Compaq also is closing operations in Australia, Brazil and Japan that handle final assembly of computers for shipment to customers.

In addition, Compaq said 1,000 jobs will be eliminated at its Houston headquarters and some Houston assembly lines would be shut down while it realigns its warehousing and distribution systems.

Other operations around the world are being realigned, with jobs also being cut, such as a restructuring of a factory at Kanata, Ontario, which is becoming smaller to focus on assembling computers for distribution to the Canadian market.

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