THE US computer firm Digital Equipment, faced with disappointing quarterly results, said yesterday that it would abolish 7,000 jobs in the next 12 months. The company which employs more than 1,000 people in Ireland, is to spend $475 million (£300 million) on major restructuring. Digital's general manager in Ireland, Mr Paul Harvey, said the impact of any restructuring on the Irish operation is difficult to predict. "However, due to our healthy state of performance, we believe that all our activities are in good order," he said, in a statement.

The US company said results from its fourth quarter, which ended on June 29th, will be released at the end of this month.

But already, the Massachusetts based firm is describing the performance as "well below expectations".

"Although we have made significant progress, particularly with respect to establishing a long term strategy, we obviously are not satisfied with the current business financial results," said Digital chairman, Mr Robert Palmer.

"The financial performance of our personal computer business is unacceptable. In addition, we are experiencing a significant slow down in several European markets," he added.

However, Mr Paul Harvey said Digital's Irish operations continue to perform well, with strong revenue growth across its business divisions. "Indeed, PC revenues continue to hold up well, year on year, despite the corporate PC difficulties," he said.

Mr Vicent Mullarkey, Digital vice president and chief financial officer, said the company expected fourth quarter profits to be significantly below current estimates, with revenue lower than the same period last year.

The company's strategic alliances with Microsoft, Oracle, MCI and Computer Associates, together with the semiconductor alliances with Samsung Electronics and Mitsubishi Electric, are further demonstrations of the company's success, according to Mr Palmer.