Silicon Graphics Inc. (SGI) has cut 10 percent of its staff to lower costs and shift focus to specific growth areas, the company said today. The areas of focus were not disclosed.

The 400 positions elimination will reduce quarterly expenses by about $10 million, beginning with the quarter ending Sept. 26, and is expected to achieve a combination of operating expense reductions and improvements in gross margin for the suffering computer manufacture.

SGI plans to record a charge of $15 million to $20 million in the quarter ending June 27, mostly due to severance.

"Despite encouraging recent developments including the growth of SGI's defense sector business and the early success of the Altix line of superclusters and servers, our revenue performance has been lower than expected, reflecting a difficult market for large industrial systems sales," said Bob Bishop, SGI's chairman and CEO, in a statement. "Today's announcement reflects our determination to take the steps required to improve the company's financial position and reduce its breakeven point. Our intent is to bring expenses in line with revenues."

Bishop said SGI is in the process of taking other specific actions to increase revenue and lower costs, but did not give specifics.

By: DocMemory
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