Unisys announced yesterday that it would cut 3000 jobs, or about eight per cent of its global workforce, citing worldwide economic uncertainties. The company also said that its fourth-quarter outlook has dimmed.
Third-quarter net income fell 51 per cent to $20.9m, or seven cents a share, from $42.9m, or 14 cents, a year earlier. Sales declined to $1.38bn from $1.69bn.
The results were in line with analysts' estimates that, according to First Call, were expected to average five cents a share on sales of $1.4bn.
Unisys, which had 36,900 workers worldwide in January this year, said the latest job cuts would include an early retirement incentive for some US employees.
Chief executive Lawrence Weinbach said: "I was pleased by our profit performance under extraordinarily difficult circumstances this quarter. The tragic events of 11 September, which took such a terrible toll on countless people's lives, added greater uncertainty to an already fragile global economic climate."
According to Weinbach, organisations across the company's targeted industries, in particular airlines and travel, financial services and communications, delayed planned IT decisions.
"This resulted late in the quarter in a sharp fallout in expected orders for enterprise servers and for networking and systems integration projects," he said.
Weinbach added that, because the company's technology business would be weaker than expected, Unisys lowered its fourth-quarter estimates to between 10 and 15 cents a share, excluding charges. The fourth-quarter cost of the cuts was estimated at $200m.
The third quarter represented Unisys' seventh consecutive period of declining sales. The company's shares have fallen 36 per cent this year.
Cotton seedling freezes to death as Chang'e-4 shuts down for the Moon's 14-day lunar night
Fortnite easily out-earns PUBG, Assassin's Creed Odyssey and Red Dead Redemption 2 in 2018
Meteor showers as a service will be visible for about 100 kilometres in all directions
Saturn's rings only formed in the past 100 million years, suggests analysis of Cassini space probe data
New findings contradict conventional belief that Saturn's rings were formed along with the planet about 4.5 billion years ago