Quantum and Exabyte To Lay Off Hundreds - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Quantum and Exabyte To Lay Off Hundreds

Irvine, Calif.10:53 AM EST Fri., Aug. 20, 1999

Employment in the data storage industry took a hit late Thursday as two major vendors announced layoffs.

The Hard Disk Drive Group (HDDG) of Quantum Corp., Milpitas, Calif., will release from 750 to 800 employees over the next 12 months in an effort to cut operating costs.

The majority of the layoffs will happen at Quantum's drive configuration centers and warehouses in Milpitas, Calif., and Ireland, as customers shift orders from custom-configured to standard-configured drives, company officials said.

Another 115 people who work with unannounced product development projects also will be cut.

Quantum Chairman and Chief Executive Michael Brown in a statement cited difficult conditions in the desktop drive business as reasons for the layoffs.

"Not only are we seeing strong growth of the sub-$700 PC market and the pricing pressure created by that shift, the industry is also under pressure from competitors who are aggressively attempting to gain share based on price," said Brown. "The actions we have announced today are specifically intended to adapt our business to the market changes brought on by the rapid shift to low-cost PCs, and are not expected to offset the near-term impact of the competitive price pressures within the desktop drive industry."

Tape drive and tape automation vendor Exabyte Corp., Boulder, Colo., expects to lay off about 200 people by year-end, company officials said.

About 185 of the job reductions will occur in the company's U.S.-based operations, especially at the headquarters. The job cuts are expected to result in annual expense savings of $12 million, company officials said.

As part of a company-wide restructuring, Exabyte will reorganize into four principal groups.

The Data Storage Products Division combines the company's drive and library hardware operations into a single unit. The Storage Network and Solutions Division will develop storage management software and work with other hardware and software partners regarding storage area network and network-attached storage products. Also newly formed are a Services Division and a Sales Division.

Exabyte's revenue has been declining over the last several quarters, said Fara Yale, chief analyst at Dataquest, San Jose, Calif., and so it is logical to reduce costs.

"It makes sense to combine the library business with the tape [drive] business," Yale said. "It eliminates some redundancies, and also [creates] some synergies . . . because of the common bonds between customers of its drives and libraries."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Commentary
Enterprise Guide to Edge Computing
Cathleen Gagne, Managing Editor, InformationWeek,  10/15/2019
News
Rethinking IT: Tech Investments that Drive Business Growth
Jessica Davis, Senior Editor, Enterprise Apps,  10/3/2019
Slideshows
IT Careers: 12 Job Skills in Demand for 2020
Cynthia Harvey, Freelance Journalist, InformationWeek,  10/1/2019
Register for InformationWeek Newsletters
Video
Current Issue
Getting Started With Emerging Technologies
Looking to help your enterprise IT team ease the stress of putting new/emerging technologies such as AI, machine learning and IoT to work for their organizations? There are a few ways to get off on the right foot. In this report we share some expert advice on how to approach some of these seemingly daunting tech challenges.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll