Silicon Graphics cuts 10 per cent of workforce as part of new strategy

Silicon Graphics cuts 10 per cent of workforce as part of new strategy
Tom Foremski
Silicon Graphics yesterday confirmed long standing industry rumors that it will spin off its MIPS Technologies microprocessor division, and said it will work closely with Intel to develop Intel microprocessor based systems and graphics technologies.
As part of it new business strategy, SGI will layoff about 1,000 staff or about 10 per cent of its global workforce which will save it about $200m. In addition to spinning off MIPS Technologies, SGI is considering spinning off its Cosmo business unit which develops web based graphics tools.
“We must aggressively focus on the markets where our unique strengths in visual computing and high bandwidth systems add value,” said SGI CEO Rick Belluzzo.
SGI will move from its proprietary technology to embrace industry standards such as Intel microprocessors and Microsoft operating systems.


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