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Adaptec cuts jobs 15%
Data storage firm sets $6M restructuring charge in its fiscal 1Q
June 28, 2001: 9:51 a.m. ET
NEW YORK (CNNfn) -
Adaptec Inc. said Thursday it plans to cut about 15 percent of its work force and take a $6 million restructuring charge in its fiscal first quarter as the data storage firm battles a sluggish economy.
The Milpitas, Calif.-based company, which makes hardware and software for data storage, said it plans to eliminate about 325 jobs, cut discretionary spending and restructure, steps it hopes will save it $35 million this year.
"These actions were made necessary by the sluggish economy, which has continued beyond most industry estimates, and has now spread into Europe and Asia," CEO Robert Stephens said.
Stephens said the reductions will not significantly affect the company's new product development efforts.
Adaptec and other data-storage firms have suffered from a U.S. economic slowdown that has forced U.S. corporations to slash technology spending
-- PHO (email@example.com), June 28, 2001