Feeds

SanDisk cuts 250 jobs on falling prices

Memory problems

Remote control for virtualized desktops

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
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
BT said to have pulled patent-infringing boxes from DSL network
Take your license demand and stick it in your ASSIA
Right to be forgotten should apply to Google.com too: EU
And hey - no need to tell the website you've de-listed. That'll make it easier ...
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
prev story

Whitepapers

Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.