Silicon Graphics (SGI) will cut another 600 jobs as part
of its effort to reduce costs and focus on products that show the
most potential.
The layoffs bring the total number of cuts at the high-end
computer company this year to 1,000. Total headcount at the company
has been reduced by about 25% over a two-quarter period.
Of the new cuts, 460 will be in the US and 140 elsewhere. After
the second round of layoffs, SGI will employ about 3,000 people
worldwide, SGI spokeswoman Lisa Pistacchio said.
The cuts are across the company, but salespeople and staff who
deal with customers have been spared.
By the end of the year the restructuring should save SGI about
$100m (£64m) in quarterly operating expenses. SGI will record a
$20m charge related to the layoffs.
SGI has decided to concentrate more of its research and
development efforts on computers used in technical environments
that use Linux and Intel's Itanium 2 processors. Meanwhile, the
company's Altix line of servers and super clusters, as well as its
visualisation and storage products, are faring well.
SGI in July reported a $36.6m (£23.3m) net loss for the fourth
quarter of its 2003 financial year ending 27 June. Revenue for the
period amounted to $240m (£153m).
Joris Evers writes for IDG News Service