Innovation is a lot like love, everyone knows when it happens, but nobody really knows what it is - Dean 'Mr Segway' Kamen
SILICON GRAPHICS (SGI) is the latest company to downsize in the credit crisis, announcing it will slash about 15 per cent of its workforce - roughly 225 souls - including plans to lay off several execs and senior levelers.
Claiming the need to revise its business plan and reduce operating costs in the current economic climate, SGI used the popular mantra "restructuring to adjust to changing customer and financial market realities" to justify sending hundreds of staff home with pink slips.
The firm's CEO, Robert "Bo" Ewald, said "the impact of the credit crisis and weakened global economy has caused SGI, along with our customers and other companies in our industry, to reduce expense levels to reflect the current business environment."
He added, "today's difficult but necessary actions will help us retain some momentum and a stronger, sustainable business model".
SGI has also said it will implement a more efficient, streamlined international sales and service coverage through strong channel partnerships, like the model it already uses in Japan and Korea.
Also, the company said it still intends to continue investing in what it considers to be its key technologies, including next-generation server products, visualisation software and the Industrial Strength Linux Environment. µ
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