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Unisys, the computer services company, plans to lay off 5% of its workforce and get out of the PC supply business.
The move follows profit warnings from a string of PC vendors as demand for desktops has cooled in the second half of 2000.
Unisys will close most of its low-margin hardware business, which resells personal computers and networking kit.
Lawrence Weinbach, chief executive officer said the group would focus on e-business services in future.
Unisys will supply customers with PCs through partnership deals with Dell Computer and Ingram Micro.