Feeds

Quantum trims workforce for the holidays

Streamlined out

  • alert
  • submit to reddit

Seven Steps to Software Security

Struggling storage maker Quantum has announced a move to combine two of its divisions and to trim about 5 percent of its workforce, hoping to spur some cost savings.

The DLTtape group and Storage Solutions Group (SSG) will now operate as a single organization with three business units - storage devices, media and storage systems. As a result, close to 110 employees and 20 contractors will spend their holidays in the unemployment line. Quantum expects to take charges of between $10 million and $15 million for the restructuring move.

One of the more notable exits is that of Larry Orecklin who has been heading up the Storage Solutions Group. He chose "to leave the company to pursue other opportunities."

“Over the past year, we’ve made progress in a number of areas, including gaining market share, increasing our tape drive revenue and gross margins, growing our automation revenues and reducing operating expenses,” said Rick Belluzzo, CEO at Quantum.  “The changes announced today will enable us to build on this progress by combining our strengths across Quantum to serve customers even better, further reduce costs and provide greater opportunities for growth.”

John Gannon who was the president of the DLTtape group will now run the new organization and take on the role of president and COO at the company.

Belluzzo was hired back in 2002 to revitalize Quantum but has fallen on tough times since taking over. The former Microsoft President, HP exec and SGI CEO has had to deal with falling tape prices and a sluggish business overall.

For its upcoming December quarter, Quantum expects to take a loss of between 14 cents and 17 cents per share. ®

Boost IT visibility and business value

More from The Register

next story
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.