Mynd Corp. Will Cut 300 Jobs
Aug. 30, 2000
COLUMBIA, S.C. (AP) _ Financially struggling Mynd Corp., a maker of insurance software that is awaiting government approval of a proposed buyout by Computer Sciences Corp., said Wednesday it would cut 300 jobs.
The reduction is a ``painful but necessary step to take in order to get expenses in line with revenues,'' said Larry Wilson, the chairman and chief executive of Mynd, formerly Policy Management Systems Corp.
About 200 of the jobs will be cut at the company's Blythewood, S.C., headquarters, which has about 2,000 employees.
Mynd's shares, which trade as PMS on the New York Stock Exchange, finished Wednesday at $13.188, down 25 cents, or 1.8 percent.
Mynd has agreed to be acquired by Computer Sciences of El Segundo, Calif., for $16 a share. The deal has been held up, however, by Federal Trade Commission review.
Computer Sciences has extended its offer until Sept. 12.
Wilson said that ``uncertainty of future ownership'' has affected the company's financial performance. The company ``must reduce expenses, including a reduction in force.''
Wilson said the same thing earlier this month when the company said it lost $42.9 million, or $1.21 a share, during the second quarter. A year earlier, Mynd had profits of $15.5 million, or 42 cents a share.
Special pretax charges of $36.8 million produced most of the loss. Those included $24.3 million needed to get out of a merger deal with Welsh, Carson, Anderson and Stowe so that Mynd could pursue the Computer Sciences deal.
The company also had $8.5 million in charges related to its United Kingdom operations.