Silicon Graphics to layoff 225 positions or about 15% of total workforce - Update
Computing solutions and data management service provider Silicon Graphics Inc. (SGIC: News ) announced late Thursday that it would reduce its workforce by about 225 positions, representing about 15% of its workforce. The layoffs are a part of the company's revised business plan to reduce operating costs in the face of a global recession.
In a statement, chief executive officer, Robert "Bo" Ewald said, "SGI has a long history of innovation, including reinventing itself over the years. Our strategy has been and remains the right one. But the impact of the credit crisis and weakened global economy has caused SGI, along with our customers and other companies in our industry, to reduce expense levels to
reflect the current business environment."
The Sunnyvale, California-based company noted that in cutting 225 positions, it would still continue to address the customer demands for its compute, visualization and data management solutions. The layoffs would affect several executive and senior-level positions.
Further, the company is looking to focus and restructure to meet the changing customer need and to meet the financial market realities. The restructuring would also help the company retain some momentum and a stronger, sustainable business model. While fine-tuning its business model, the company would be leaner and more focused, and continue to build on the company cornerstones.
Looking ahead, Silicon Graphics would focus on delivering solutions that meet the changing need of its customers, while adapting its business plan to the current economic reality. The company also targets to replicate a more efficient and streamlined international sales and service coverage via strong channel partnerships, like it has done in Japan and Korea.
Pursuant to the restructuring, the company intends to eliminate costs and continue to invest in key future technologies, including next-generation server products, visualization software and the Industrial Strength Linux Environment.
In a statement, chief executive officer, Robert "Bo" Ewald said, "SGI has a long history of innovation, including reinventing itself over the years. Our strategy has been and remains the right one. But the impact of the credit crisis and weakened global economy has caused SGI, along with our customers and other companies in our industry, to reduce expense levels to
reflect the current business environment."
The Sunnyvale, California-based company noted that in cutting 225 positions, it would still continue to address the customer demands for its compute, visualization and data management solutions. The layoffs would affect several executive and senior-level positions.
Further, the company is looking to focus and restructure to meet the changing customer need and to meet the financial market realities. The restructuring would also help the company retain some momentum and a stronger, sustainable business model. While fine-tuning its business model, the company would be leaner and more focused, and continue to build on the company cornerstones.
Looking ahead, Silicon Graphics would focus on delivering solutions that meet the changing need of its customers, while adapting its business plan to the current economic reality. The company also targets to replicate a more efficient and streamlined international sales and service coverage via strong channel partnerships, like it has done in Japan and Korea.
Pursuant to the restructuring, the company intends to eliminate costs and continue to invest in key future technologies, including next-generation server products, visualization software and the Industrial Strength Linux Environment.
Labels: layoffs, Silicon Graphics
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