[4] From 1993 to 1998, Palmer undertook numerous restructurings, massive layoffs of more than 60,000 people, and plant closings, in an effort to remain competitive.
In 1995, Digital and Raytheon formed a multiyear, multimillion-dollar agreement to upgrade the onboard computer of the US Navy's E-2C Hawkeye aircraft.
On 13 November 1997, Palmer announced that the corporate strategy would focus on the Internet in Enterprise Computing.
[8] In June 1998, Compaq paid approximately $9 billion to acquire Digital, and Palmer stepped down after negotiating the merger.
In 1995 Robert Palmer was honored with an Edison Achievement Award for his commitment to innovation throughout his career.