Adaptec, Inc., Milpitas, Calif., said it is cutting its headcount by 450 positions, or approximately 20% of the workforce worldwide, because of the weakening economy.
"These reductions primarily result from supply chain, manufacturing and Direct Attached Storage (DAS) organizational changes," the company said. "Other management actions include aggressive cost cutting in discretionary spending, such as marketing expenses, travel and contract services."
Once fully implemented, these steps will result in annualized savings of $44 million, Adaptec said. The company will incur a one-time restructuring charge associated with these actions of approximately $10 million this quarter.
Bob Stephens, president and CEO, noted in a prepared statement that, "Clearly, this is a challenging market. We are going to take a conservative stance, relative to the duration of this downturn, but continue to maintain investments in R&D in order to position ourselves for success in the mid- to long-term."
Adaptec provides storage products, including SCSI and ATA RAID products for data protection, as well as SCSI, Fibre Channel and FireWire (1394) controllers used to move and manage data in servers, workstations and desktop PCs.