Silicon Graphics (SGI) to Restructure European Ops, Will Cut Workforce 25%
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Silicon Graphics International (Nasdaq: SGI), announced plans to restructure its European operations to reduce operating expenses in the region. As part of the restructuring plan, SGI plans to reduce approximately 25 percent of the Company's European workforce, close certain legal entities and offices in Europe and realign staff and operations in the region.
The Company expects to incur pre-tax cash charges in the range of $14 million to $17 million, a majority of which will be recognized over the next three fiscal quarters. These charges will primarily consist of employee termination benefits. Upon completion of these restructuring actions, SGI expects to recognize annualized savings of approximately $7.5 million. The Company expects the restructuring to have limited impact on SGI's customers in Europe.
The Company expects to incur pre-tax cash charges in the range of $14 million to $17 million, a majority of which will be recognized over the next three fiscal quarters. These charges will primarily consist of employee termination benefits. Upon completion of these restructuring actions, SGI expects to recognize annualized savings of approximately $7.5 million. The Company expects the restructuring to have limited impact on SGI's customers in Europe.
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