Rebooting

Unisys wants to move out of mainframes into computer services. It won't happen too soon for Wall Street. The $7.4 billion outfit's stock rose nearly 10%, to 8 1/4 , two days after CEO James Unruh disclosed plans on Oct. 6 to ditch a matrix management structure, cut costs by at least $400 million by '96, and split operations. But by Oct. 11, investors had driven Unisys to 7 5/8. After tumbling last year, revenues have been flat and first-half profits slipped 23%. Unruh's formula: "simplicity, not complexity."

To continue reading this article you must be a Bloomberg Professional Service Subscriber.