Stratus Technologies laying off 20% of workforce
Luxembourg—Stratus Technologies International Sà rl reports that it’s reducing its worldwide workforce of 903 people by approximately 20% percent.
Luxembourg— Stratus Technologies International Sà rl reports that it’s reducing its worldwide workforce of 903 people by approximately 20% percent. The company's management estimates the downsizing will save approximately $15 million in its 2006 fiscal year, beginning Feb. 28, 2005. Stratus adds its layoffs will make financial resources available for strategic business investment, and will better align operational costs and expenses with business growth. Stratus is 20 years old, and provides fault-tolerant computer servers, technologies, and services.
The layoffs will be carried out over approximately two months. They will result in a charge against earnings of approximately $11 million in the fourth quarter of fiscal year 2005, which ends Feb. 27, 2005.
'While difficult to make, we believe this decision is necessary for us to successfully execute our business plans, strengthen our ability to compete in our chosen markets, and attain our financial and strategic goals,' says David Laurello, Stratus’ president and CEO. 'Reducing costs, while ensuring our ability to invest in key strategic initiatives, is consistent with prudent management. Further, our commitment to serving customers with superior products and services remains undiminished. We believe the restructuring will improve our financial standing, and solidly position the company for increased growth and profitability in the future.'
Control Engineering Daily News Desk
Jim Montague, news editor