IBS Journal June 2015
Unisys unveils losses, embarks on restructuring programme
Unisys Corporation is on the restructuring path following the unveiling of depressed
the net loss was $43.2 million (although the loss for the same period last year was high- er: $53.5 million) and the revenue slumped
The only geographies that showed
quarter were the US and Canada (a nine per cent increase), whilst the revenue gen- erated in the rest of the world was in a 16 per cent decline. Cloud and infrastructure services were the main drivers of business for the vendor. Unisys CEO, Peter Altabef, was quot-
ed in the vendor’s statement regarding the results saying: ‘While our technolo- gy margins increased, our service margins declined. We are taking actions to stream- line our business by enhancing our com- petitiveness and accelerating the pace of innovation.’ These ‘actions’ include creating a ‘com-
petitive cost structure’ and ‘rebalancing the company’s global skill set’, says the vendor, which will translate into reducing the global headcount by around eight per cent. Unisys currently employs over 20,000 people. The initiative comes with a pre-tax
Unisys HQ, Blue Bell, PA ©Unisys
restructuring charge of around $300 mil- lion, to be realised over the next several quarters. As a result, Unisys expects to gen- erate ‘annualised savings of approximately $200 million by the end 2016’. Unisys’ industry verticals comprise
commercial (35 per cent), public sector (26
federal (18 per cent). Speaking at the recent investor con-
in Unisys’ capabilities and potential but we must move aggressively to accomplish our goals.’ A new go-to-market strategy with a greater focus on vertical markets and inte- grated solutions is being implemented in parallel to the aforementioned cost cutting and restructuring initiatives. ‘We are taking actions to simplify and streamline our sales processes to pursue
Altabef said. ‘In addition, we are strength- ening our client executive function, with better tools, training, and more accounta- bility.’ At the same time, Unisys is starting to get rid of management layers in an attempt
The cost of labour is being reduced
Peter Altabef, Unisys ©Unisys
14
throughout the company and so are the selling, general and administrative (SG&A) expenses. In addition to the headcount
© IBS Intelligence 2015
www.ibsintelligence.com cull, an ‘improved labour model’ is being
Altabef, plus ‘aggressive cost management, improvements in how we execute through greater accountability, and reduced redun- dancy’.
He also pointed out the achievements Unisys has already reached in its reor-
months. There are now just two ‘core cli- ent relationship focused teams’: enterprise solutions and US federal. There are also two ‘core, globally integrated, delivery teams’: services and technology. They are sup- ported by the sales and corporate support teams. In Altabef’s view, this structure ‘will
sharpen roles and increase accountability’.
Unisys’ enterprise services organisation, is now head of the enterprise solutions divi- sion, while Venkatapathi Puvvada, who was previously in the interim role of head of the US federal business, has assumed the permanent role. The global services team has a new leader, Neil Gissler (he was pre- viously with Accenture), and further senior executive announcements are to come, indicated Altabef. ‘We have been active- ly recruiting leaders for both core delivery organisations.
ibs news
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52
