Just when things sounded like they were starting to go really well, SGI announced what looks to be a layoff of up to 10 percent of its workforce.
On February 22, 2011, Silicon Graphics International Corp. (the “Company”) began providing notices to employees whose employment will be terminated as part of a worldwide workforce reduction. The Company implemented a restructuring to streamline operations and reduce operating expenses. The workforce reduction was approved by the Company’s Board of Directors on February 18, 2011. In connection with the worldwide workforce reduction, the Company expects to incur pre-tax cash charges of up to $6.6 million for severance pay expenses and related cash expenditures. The Company expects to recognize the majority of the severance charges in the third and fourth quarter of fiscal 2011, with the remaining costs to be recognized in the first quarter of fiscal 2012.
A tip of the hat goes to VizWorld for pointing us to this story.
Ed. note: The Register is reporting today that a leaked internal memo shows the layoff will involve 55 employees, which is only 4 percent of their workforce. The downsized SGI will have approximately 1245 employees worldwide.