Violin Memory axes 100 staff, mulls fate of PCIe flash card biz
Vainglorious product halted for 'strategic' review
Violin Memory is laying off staff and hopes to sell its PCIe flash card business as new-broom CEO Kevin DeNuccio tries to get the storage biz profitable.
DeNuccio is dismantling the excesses of the Basile era of Violin Memory and retrenching and refocussing the business on its core market: all-flash arrays.
The strategic restructuring also includes a global reorganization of Violin's sales, marketing and engineering departments. The intention is to focus on core segments of the flash-based storage market, make the firm more efficient, and build revenues through better channel sales.
The head count of 483 in October last year will be slimmed down by about 100 people: a 20 per cent cut. Violin's statement today reads:
[The] Board of Directors has authorized a review of strategic alternatives for its PCIe flash memory card business in order to focus on markets where Violin has proven technology leadership and significant growth opportunities.
The Company anticipates it will complete the review and take any related actions by the end of its first fiscal quarter, resulting in an anticipated reduction of operating expenses of approximately $10 million on an annual basis.
Such language means that the Velocity flash card business could be sold off. It is bad news for Toshiba for whom Violin has been developing a PCIe flash card product.
Violin said it would provide more information on March 6, during the company’s fourth quarter and fiscal year 2014 financial results conference call. ®
Sponsored: Today’s most dangerous security threats