SGI Announces Restructuring, Cuts 400 Jobs

kerneljacabo writes "Yikes! SGI seems to be the lastest victim of the economic downturn. Today they announced an extensive 'restructuring,' which includes releasing about 10% (400) of their employess. Seems like no one is immune." SGI claims this'll save them $40M, as well as improve their performance next fiscal year.

Comments

Not Surprised...

[Fallen Kell]

No, really. How could anyone seriously be surprised by this? SGI's products are inordinantly expensive for what you get. Their "maintainance" alone on their systems could buy a brand new Sun system of equal or better power EACH and EVERY YEAR. And lets not even compair them to standard PC hardware costs. You could buy a small cluster of high end PC's and run Linux on them cheaper then getting an SGI.

The only reason SGI still exists is because their name is ingrained into the heads of many people in managment as being "the thing to buy for graphics workstations" when in reality they are by FAR definitly NOT the thing to buy, especially if you are being told to cut back on cost.

It was only a matter of time before SGI started to cut staff. What they really need to do is cut the price of the maintaince on their systems, and maybe then will more companies ramp up purchasing of their (SGI's) products. But as is, they are completely overpriced given the current market.