Feeds

SanDisk cuts 250 jobs on falling prices

Memory problems

Intelligent flash storage arrays

SanDisk is to axe 250 staff - 10 per cent of the payroll - to combat plunging memory stick prices.

Executive salaries will be cut by between 10 and 20 per cent while the salaries of all other employees will be frozen with a hiring freeze introduced in most parts of the company, in measures aimed to save $35m annually.

Sandisk expects to reduce product prices by 30 to 40 per cent in the first quarter of this year.

"Although we believe there will be strong pickup in demand for our products in the second half of the year, we do not have visibility as to when the current aggressive pricing cycle will run its full course, and gross margins are likely to remain under significant pressure for several quarters." said Eli Harari, chairman and chief executive.

"To strengthen SanDisk's profitability during this time of aggressive industry pricing, we are proactively taking a number of measures to reduce our product costs and operating expenses," he said.

Most of the lost jobs will go in March and will come from all areas of the business. It is unknown how this will affect its European headquarters in Dublin, where 50 people work. SanDisk is headquartered in Milpitas, California and more than half the firm's sales come from outside the US.

Copyright © 2007, ENN

Secure remote control for conventional and virtual desktops

More from The Register

next story
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
4chan outraged by Emma Watson nudie photo leak SCAM
In the immortal words of Shaggy, it wasn't me us ... amirite?
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.