IBM reported Tuesday it suffered an $8 billion second-quarter loss, including a huge charge for a corporate restructuring that includes the early retirement of 50,000 employees. The charge is twice the company's earlier projection.
International Business Machines Corp. also said it expected another 35,000 employees to leave by the end of 1994.IBM's board of directors, which met early Tuesday, slashed the company's quarterly dividend to 25 cents from 54 cents.
The computer manufacturer reported revenue of $15.5 billion, a 15 percent drop from a year ago that reflects the company's continuing struggle with the changing market for mainframe computers, for years its most lucrative product. However, IBM said sales of mainframes rose compared to the first three months of the year.
The loss amounted to $14.10 per share with the restructuring charge amounting to $14.02 per share. IBM earned $734 million, or $1.29 per share, on revenue of $16.2 billion in the second quarter of last year.
IBM's work force, which peaked at 406,000 at the end of 1985, was just over 300,000 at the start of 1992. The company said Tuesday it expected to have a work force of 255,000 by the end of this year and 225,000 at end of 1994.
It said the $8.9 billion pretax restructuring charge should produce annual savings of $4 billion. About $6 billion represents costs of paying employees to leave the company. The rest covers expenses of closing offices and factories.
IBM chairman Louis V. Gerst-ner Jr. said the company does not anticipate further charges and cost-cutting moves unless "our current view of future industry revenue and demand proves incorrect."