SGI cuts 7 percent of workforce; to move some jobs to here
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By The Chippewa Herald and The Associated Press
Tuesday, July 22, 2008 9:59 AM CDT
More than 100 jobs are being cut by SGI in another restructuring plan by the Mountain View, Calif. company.
But some jobs are headed to SGI’s manufacturing plant in Chippewa Falls, according to a company filing with the Securities and Exchange Commission this week.
SGI said that on July 15 it eliminated about 90 jobs.
“The reduction in workforce occurred after the company identified opportunities to consolidate and centralize certain groups,” SGI said in its filing.
One of those “opportunities” involved letting go another 15 employees on June 15. The company closed its data center and labs in Mountain View.
“These data processing activities will be absorbed in the company’s facility in Chippewa Falls,” the filing with the SEC said.
“As necessary, the company plans to hire additional personnel in Chippewa Falls to accommodate these activities.”
SGI is estimated the layoffs will cost it $2.2 million in what it calls cash termination benefit payments.
Combined with the July 15 layoff, the company has cut its workforce by about 7 percent.
SGI said the latest round of layoffs will get it closer to its three-year growth plan.
The company makes data storage, visualization systems and computer servers.
The San Jose Mercury News reported that since coming out of bankruptcy in October 2006, SGI has accumulated $221.7 million in losses.
The Associated Press reported that SGI said on Monday it expects fiscal fourth-quarter revenue in the lower half of its previously issued guidance range.
Silicon Graphics previously estimated revenue of $115 million to $135 million for the quarter ended June 27.
The company expects bookings at the upper end of its estimated range of $80 million to $100 million, which represents 25 percent growth from the same quarter a year ago.
The company will provide bookings and revenue guidance for the fiscal first quarter on Aug. 28.
“Silicon’s original guidance for the fiscal fourth quarter of 2008 remains intact, as does our strategy to execute on our operating plan to achieve a lower operating break-even point,” Chief Executive Robert “Bo” Ewald said in a statement.
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