Wang Labs to Lay Off 1,600

LOWELL, Mass. — Wang Laboratories Inc., projecting an operating loss in its fiscal fourth quarter as a result of weakened demand for its mid-size computers, said today that it will immediately lay off 1,600 employees, or 5% of its work force.

The firm also canceled salary increases for six months and said it was taking other steps to cut costs. Wang did not estimate the size of the loss it expects, but its profit in the third quarter alone plummeted 66% from a year ago.