Silicon Graphics Cuts More Jobs In Restructuring - 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
Business & Finance

Silicon Graphics Cuts More Jobs In Restructuring

The troubled computer maker is axing nearly 17% of its workforce as it tries to keep costs in line with revenue.

Despite its recent move to more fully embrace the increasingly popular Linux market, Silicon Graphics Inc. is restructuring the company in a move to lower costs and increase its focus on the high-performance computing market.

The restructuring includes Wednesday's announcement that it's cutting 600 employees, nearly 17 percent of its workforce, in its latest effort to keep costs in line with sagging revenue. Including 400 layoffs announced in May, SGI will have reduced its total headcount by 25%, to 3,000, when the latest round is completed over the next several months. The company, which is taking a $20 million charge, expects to save $100 million per quarter.

Earlier in the week, SGI disclosed plans to deliver in October SuSE Linux Enterprise Server 8 on its Intel Itanium 2-base Altix 3000 servers and server clusters. SuSE Linux will support servers and clusters with as many as 64 processors, although both companies are working to develop Linux support for up to 128 processors. Although Linux doesn't generally scale well above eight processors when running business apps, it's able to scale to 64 processors when running certain scientific apps. Silicon Graphics entered the Linux market in January with its own distribution of the operating system that ran exclusively on its Altix 3300 server and 3700 servers cluster. The partnership with SuSE gives SGI customers a second source of operating-system support as well as access to a recognizable Linux provider.

Despite SGI's entry into the Linux market, the company lost $129.7 million for its fiscal 2003, nearly three times its 2002 loss of $46.3 million. SGI will also consolidate its Mountain View, Calif., headquarters into a smaller adjacent facility as part of its cost-reduction efforts and take a $20 million charge for the current quarter to cover severance pay.

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.
Slideshows
Reflections on Tech in 2019
James M. Connolly, Editorial Director, InformationWeek and Network Computing,  12/9/2019
Slideshows
What Digital Transformation Is (And Isn't)
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/4/2019
Commentary
Watch Out for New Barriers to Faster Software Development
Lisa Morgan, Freelance Writer,  12/3/2019
Register for InformationWeek Newsletters
Video
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
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