Overland feels overstaffed
Reducing 14 per cent of its workforce
Overland Storage is to eliminate 14 per cent of its workforce to reduce costs. The move, announced today, will see 54 jobs go in a re-org which includes other spending cuts still to be formulated. Reductions are being made across all functions of the San Diego-based data storage company.
Overland expects to save $5.5m per year as a result of the layoffs, but will take a charge of $735,000 related to severance costs during the fourth fiscal quarter ending June 30.
CEO of Overland Scott McClendon said the company had invested more in R&D in the last six quarters than any other time in the company's history.
"At this point, most of our investment in these new products is behind us, and they have either been launched or soon will be announced. It is now time for us to reduce our cost structure and concentrate on returning Overland to profitability."
The company is also playing musical chairs with its management team, with Christie Huff, global marketing veep, losing out in the reshuffle. She gets to spend some more time with her family from April 30.
The company will report its third fiscal quarter earnings on April 26. Overland expects to report revenue of approximately $37.5m. ®