SGI axes 1000 jobs in bid to break even
Times is 'ard
SGI lost $141 million last quarter and will be ridding itself of 1000 employees - 15 per cent of its workforce - in order to get back into the black.
The company's sales for the period totalled $510 million, down 11 per cent on the same quarter last year, which saw sales of $564 million, but up on the previous quarter's $487 million.
The $141 million loss includes one-off charges - SGI's operating loss was $47 million. Last quarter it posted a net loss of $71 million.
"We actually had a good operating quarter," said CEO Bob Bishop. "We had a loss, but it was half the loss in terms of operating net loss that we expected."
The layoffs should bring SGI back to break-even point during the current, fourth quarter - if its sales remain static. ®