Linked by Thom Holwerda on Fri 3rd Mar 2006 21:44 UTC
SGI's new CEO has wasted no time performing a major shakeup at the server company. Moves announced today include substantial layoffs, executive departures and SGI's plans to tweak its server business. SGI will fire close to 12 per cent of its workforce - 250 staffers - in the hopes of saving some extra cash. Word of the layoffs arrives just about a month after SGI moved former CEO Bob Bishop aside and tapped Dennis McKenna as its new chief. SGI heralded the layoffs as proof of McKenna's quick, decisive action, issuing a statement titled 'CEO Delivers Aggressive Changes in First 30 Days as Part of Turnaround.' The Inq speculates about nVidia buying SGI's graphics dpt. Update: Couldn't resist.
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Member since:
2005-07-06
If you're running an unprofitable company, the best thing you can do is get rid of the least profitable part of it, especially when your buisness is shrinking rapidly. And most of the expenses are always personell.
SGI stock rose 11.25% today. Somewhat ironically, stocks always soar when lay-offs are announced.