SGI to lay-off 15% of workforceMountain View 20 April 2001 For the quarter ending March 31, 2001, SGI posted a net operating loss of US$ 47 million. The previous quarter also ended with a loss ($93 million). To cut down costs, SGI will eliminate about 1,000 regular, temporary and contractor positions, or about 15% of its global workforce, in the June 2001 quarter.
For the quartere ended March 31, 2001, SGI posted revenue of $510 million, compared with $487
million in the quarter ended December 31, 2000, which represents a 5%
increase. The company also reported a net operating loss of $47 million for
the quarter, excluding charges, compared with a net operating loss of $93
million in the previous quarter.
In addition, the company reported a net loss of $141 million, which included a non-cash write-off of $83 million
for a venture investment.
SGI says it is committing to an operating model that will enable them to
break-even at the current revenue level.
To achieve this operating model, the company announced plans to eliminate about 1,000 regular, temporary and
contractor positions, or about 15% of its global workforce, in the June 2001 quarter. These actions will result in a
restructuring charge in the June quarter of approximately $60-$80 million. The company expects to realise
operating expense savings of 20% from these actions.
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