Feeds

QLogic brandishes axe over staff, seeks $20m cost savings

Numerous employees at risk of redundancy

Next gen security for virtualised datacentres

Some of the reasons for QLogic's ousting of its CEO have become clearer after the company issued a restructuring statement.

An undisclosed number of staff will be laid off; some engineering operations are going to be consolidated (presumably reducing overlap and costs); and the focus on product development is going to get "enhanced" in a menacingly unspecified manner.

These measures will take up to a year, with most of the work being done by the end of 2013. QLogic is aiming to make cost savings of $20m per year.

Jean Hue, interim CEO and CFO said in the company's statement: “These restructuring activities represent decisive steps designed to maximise engineering efficiencies, optimise business operations and align our investments with customer requirements.”

All is not well in HBA-land, that strange place where Fibre Channel SANs need host bus adapters to hook up to servers. QLogic competitor Emulex is under assault by a hedge fund for under-delivering shareholder value, and QLogic finds itself stuck in a financial bog too.

If we had to speculate, which El Reg's storage desk is inclined to do, we'd say the Rainier development of adding flash caches to QLogic's HBAs has cost too much money and will take longer than anticipated to deliver its return on the capital employed.

The company has around 1,300 employees, meaning a ten per cent cut in staff numbers would see 130 heads roll. ®

5 things you didn’t know about cloud backup

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Oracle reveals 32-core, 10 BEEELLION-transistor SPARC M7
New chip scales to 1024 cores, 8192 threads 64 TB RAM, at speeds over 3.6GHz
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Docker kicks KVM's butt in IBM tests
Big Blue finds containers are speedy, but may not have much room to improve
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
Gartner's Special Report: Should you believe the hype?
Enough hot air to carry a balloon to the Moon
Flash could be CHEAPER than SAS DISK? Come off it, NetApp
Stats analysis reckons we'll hit that point in just three years
Dell The Man shrieks: 'We've got a Bitcoin order, we've got a Bitcoin order'
$50k of PowerEdge servers? That'll be 85 coins in digi-dosh
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.