Thursday, August 28, 2003
Silicon Graphics announce further cut of 600 jobs which combined with 400 cuts in May means about one in four employees of the high-end computing specialist has been laid off this year in an attempt to reduce expenses.
The additional job cuts will reduce SGI's operating expenses to about $100 million per quarter, meaning that it can reach operating profitability with revenue of $235 million to $240 million, the company said. The cuts are worldwide, but primarily affect employees at the Mountain View, Calif., headquarters, said Greg Estes, vice president of marketing.
In July, when SGI reported a net loss of $36.6 million on revenue of $240 million for its fiscal fourth quarter, the company said it would undertake further restructuring actions. The new layoffs will reduce SGI's employee count to about 3,000, Estes said.
SGI specializes in high-end computers for graphically intense tasks such as portraying models of cars or underground oil reservoirs. The company has struggled as competitors including IBM, Sun Microsystems and Hewlett-Packard have encroached on its turf, but SGI believes a new product line and a tight focus on specific customer types will help it reverse its revenue slide.
By: DocMemory
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