Copyright (c) 1995, Dayton Newspapers Inc.DATE: Thursday, September 21, 1995           TAG: 9509210109EDITION: CITY           SECTION: NEWS        PAGE: 1A TYPE: SIDEBAR TO "AT&T SPLITS UP; GIS CUTS 1,300 HERE"SOURCE: By Jim Dillon        Dayton Daily News                       NEW BOSS PREDICTS PROFIT IN '97   AT&T Global Information Solutions slashed its work force nearly 20 percent Wednesday, resulting in the loss of 1,300 local jobs and another 7,200 jobs worldwide.   The computer unit's chief executive didn't rule out more cuts.   ``We will fix it,'' said Lars Nyberg, who was brought in June 1 to turn around the troubled $8.4 billion division.   ``Let's be very clear,'' Nyberg said in one of his first interviews since arriving in Dayton. ``The restructuring of GIS, as we have now outlined it, will not bring this company to great glory and profitability for years to come.''   A tall, lean executive with a direct manner, Nyberg said AT&T GIS faces more tough decisions as it prepares to become an independent company again like NCR Corp.   AT&T formed GIS after acquiring Dayton's largest Fortune 500 company in 1991 for $7.5 billion in AT&T stock.   AT&T announced Wednesday it will spin off the computer unit to its shareholders. The move is part of a breakup of the telecommunications giant into three public companies.   AT&T GIS's troubles sparked the breakup. First-half losses totaling $332 million reduced overall corporate earnings by 13 cents a share and profit growth by half.   As it gears up to become an independent company, AT&T GIS will devote 1996 to cutting more expenses, becoming more efficient and getting closer to its customers, Nyberg said.   The goal is to break even by the end of 1996 and become profitable again in1997, when the  company will be spun off, the executive added.   In addition, AT&T GIS will no longer make or sell personal computers, some of its hottest-selling but least-profitable products this year. It will rely on an outside supplier instead.   AT&T was No. 12 in U.S. PC sales during the first three months of the year,selling just more than 100,000 units. By comparison, U.S. market leader Packard Bell Electronics Inc. sold nearly 600,000 units in the same period.   The Global Information Solutions moniker, viewed by some as dull, also willbe changed. ``We'll be working on that in the coming months,'' said AT&T GIS spokesman Bob Farkas. Only last year the company changed its name from NCR Corp.   The local job cuts include 1,000 employees who have been laid off or transferred and 300 independent contractors who no longer have jobs. Another 1,000 contractors in other offices will lose their jobs as well.   Some of the contractors are former employees who were separated from NCR but continued working under a different arrangement.`A disaster'   U.S. Rep. Tony Hall, D-Dayton, expressed dismay at the cuts. ``It was clearto me and to many industry analysts that the merger would be a disaster. AT&T compounded a dumb mistake with more stupid decisions. As a result, AT&T destroyed NCR and its proud Dayton heritage and wiped out thousands of jobs.   ``Unfortunately, the damage has been done and can't be repaired. And there is no way to outlaw stupid business practices like this in the future,'' the legislator said.   Hall said he would ask the House Commerce and Judiciary committees to include ``the AT&T and NCR debacle'' if either panel holds hearings relevant to the issue. He said the Commerce Committee is considering hearings on consolidation of the telecommunications industry and the Judiciary Committee may hold hearings on antitrust and merger issues.   The Justice Department said it would review AT&T's plans, but noted that corporate spinoffs do not typically raise antitrust concerns. But Hall aide Michael Gessel said committee hearings could provide an opportunity to ``demonstrate the anger in the Dayton community.''   AT&T chairman Robert Allen, who pursued the NCR takeover, said Wednesday ina broadcast news conference he didn't have anything to be ashamed of. ``I haveabsolutely nothing on my conscience that suggests that I broke any promises toanybody. I don't make promises that we can't keep,'' he said.No surprise   While the official breakup of AT&T was kept quiet until Thursday morning, the job cuts did not surprise anyone. Some analysts had anticipated upwards of10,000 job losses worldwide since a restructuring plan was unveiled July 28.   Most of the jobs will be eliminated by the end of this year, the company said. The cuts will leave the company with roughly 3,500 local and 34,500 employees worldwide.   To pay for the GIS job cuts, AT&T said it will take a $1.5 billion pre-tax charge against third quarter earnings that will reduce full year net income byan estimated $1 billion, or 66 cents a share.   The news pleased local AT&T shareholder and money manager Rob Suttman, president of EBS Asset Management in Washington Twp.   ``I believe truly that it will be a great opportunity to reclaim some of the glory that we had in the 1960s and '70s and even into the '80s,'' Suttman said. ``There will be more local responsibility for how GIS does.''Not over   University of Dayton economist John Weiler said the Dayton headquarters lost fewer jobs than expected. But he also doesn't think it's over.   ``There isn't any reason to think the tremendous problems they've experienced have suddenly been solved,'' Weiler said. `We're talking about an organization that spent about four years at a high level of confusion. AT&T GIS has gone from one identity crisis to another.''   Weiler also said the community shouldn't expect the new company to dust offthe old NCR logo and resume the old company's role as a major force in the community.   In addition, he said it's likely that many GIS employees have updated theirresumes and are looking for other work.   AT&T GIS headquarters will remain in Dayton, Nyberg said. Two of the company's new ``businesses'' will be moved, though. The retail business will be based in Atlanta, while the finance business will be based in London.   Although there are no plans now to move any of the remaining four businesses - communications, computers, services and system media - Nyberg didnot rule out more transfers.   ``You have to understand that this company, with 35,000 associates and 60 percent of the revenues coming from outside the USA, is truly a global company.   ``We've got to follow the global market trends,'' Nyberg added. ``We've gotto spread the responsibility of leading this company to more places than only Dayton, Ohio.''---------------------------------------------------------------------* STAFF WRITERS Jim Bohman, Timothy R. Gaffney and Tom Price contributed to this report.