The cutbacks will be spread among its workforce throughout the world.

In the year-ago quarter, Unisys reported a $45.5 million loss on revenue of $1.37 billion. The company now employs about 36,000 workers and said it is finalizing further cost-cutting in actions in Europe. Those actions were not detailed.

Unisys reported a "significant decline" in server sales and said customer revenue in its technology segment declined 18% in the first quarter. Customers are holding back on purchases pending the release of new server products in the second half of this year, a company spokesman said.

Unisys CEO Joseph McGrath called 2006 a "transitional year" and said in a statement that the Blue Bell, Pa.-based company expects to see "tangible benefits" in 2007 from its actions this year.

Brad Day, an analyst at Forrester Research Inc., said that "in the next couple of quarters, things have got to shake out" for Unisys. He pointed to the company's new strategy, which isn't based entirely on Microsoft Corp. or its high-end servers but more on open-source and Linux.