OCZ Reduces Global Workforce by 28%, Offers Update on Business Outlook
November 1, 2012 8:33 AM
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OCZ restructuring efforts continue
A lot has been going on with OCZ Technology. OCZ has come a long way from its origins as a maker of high-performance memory products for computer gamers and enthusiasts. Over the years the company has dabbled in computer peripherals, notebook computers, and plenty of other markets.
The company seemed to find its stride when it ditched most of its other market segments to focus mainly on solid-state storage. However, back in September, OCZ CEO Ryan Petersen abruptly
left the company
and was replaced by interim CEO Alex Mei. Mei was later replaced by current CEO Ralph Schmidt. Schmidt has now offered an update on the status of operations at OCZ.
Schmidt explained, "We are undergoing a transition phase in the Company's evolution in which we are refocusing our efforts on products and strategies that will benefit both OCZ and our stakeholders over the long term. We have already taken aggressive steps to address some short-term tactical challenges and have begun streamlining the organization to help ensure that OCZ will be in the best position moving forward to address the fast growing consumer and enterprise SSD markets."
OCZ reports that it has taken steps to make its business more efficient and profitable by beginning end-of-life procedures that will see the discontinuation of approximately 150 product variations the company offers right now. A significant impact will be felt in the value category of the company's offerings with approximately 80% of those products being discontinued.
OCZ is adjusting inventory and working to monetize inventory to free up cash for business operations. The company is also reduced its global workforce by approximately 28%, not counting production personnel. Personnel at its Taiwanese production facility, including outside contractors has been reduced by approximately 32%.
OCZ states it will continue to take additional actions to reduce overall costs and improve operating results.
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What about their primary problem?
11/1/2012 10:23:14 AM
OCZ's primary problem is that, while their prices are competitive, their reputation in their sole remaining market (SSDs) has become very tainted. I don't see how any of what was discussed in the press release is going to address this primary issue.
RE: What about their primary problem?
11/1/2012 6:32:53 PM
I don't think that is their primary problem....
I think their primary problem is that significantly more money is going out than coming in.
There's always more people (suckers?) to rebuild your rep on, but you need to have revenue comfortably equal or greater than expenditures before you can really think about doing that.
"We are going to continue to work with them to make sure they understand the reality of the Internet. A lot of these people don't have Ph.Ds, and they don't have a degree in computer science." -- RIM co-CEO Michael Lazaridis
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