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First Data Announces Layoffs

From the Greensheets:

On Dec. 16, 2005, First Data Corp. announced both a 3% workforce reduction, most of which would occur in its struggling card-issuing unit, and a restructuring charge of approximately $0.05 per share taken in the fourth quarter. Additional charges aimed at further reducing overall operating costs would be taken prior to year-end, according to a company statement announcing the news.

“While these decisions are difficult, my focus continues to be on taking the steps necessary to position the company for growth, reduce operating costs and build shareholder value,” said First Data Chief Executive Officer Ric Duques. A restructuring charge is a company’s estimate of future costs related to a drastic change in business strategy or operations, undertaken to improve future profitability, according to the “Academy of Accounting and Financial Studies Journal.”

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