Fergie's Tech Blog

Cray to Lay Off 8% of Staff

Via Red Herring.

Struggling to return to profitability, supercomputer firm Cray plans to lay off 65 employees, or about 8 percent of its workforce, by the end of March 2006, the company said in a document filed Wednesday with the U.S. Securities and Exchange Commission.

The Seattle-based company told its staff about the plan on Monday, Cray said. The reductions are expected to save Cray $7 million annually, though severance benefits, legal fees and other costs related to the restructuring could cost between $500,000 and $3 million.

The news is not surprising, given Cray’s recent results. The company posted a $10.3 million loss on sales of $44.7 million for the quarter ending in September. In November, chief scientist Burton Smith resigned from Cray to take a job at Microsoft.

posted by Fergie @ 12/14/2005 03:58:00 PM