Global axe chops Australian SGI staff

Global axe chops Australian SGI staff

The Australian operation of high-end hardware vendor SGI has not escaped the axe which is swinging as a global restructuring takes place, shedding 1500 jobs. Following the shake-up, staff numbers in Australia have been reduced by "just over a dozen" and now number "around 90", according to local director of marketing Paul Rushton.

Rushton pinpoints SGI's recent moves to increase the focus on technology and distribution partnership strategies to reduce overheads as being behind this round of personnel rationalisation. He also said the changes would not affect local channel relationships.

"The changes have been implemented and it was just over a dozen people [who lost their jobs]," Rushton said. "It was mainly to do with administration; we have the same number of salespeople and the support force is the same size.

"This is aimed purely at achieving enhanced financial and operational efficiencies. Our customers and partners should not be affected in any way. It is business as usual."

Rushton said that SGI is attempting to make the company a bit more efficient and has done away with some of the management positions it deemed unnecessary. Former SGI head Richard Belluzzo announced a new partnering strategy in August which in turn led to the job losses, Rushton said.

"We have tried to make the organisation a little bit flatter and more integrated," he said. "There are a number of things that we have been doing in-house for which we could just as easily use outside partners to help us in."

The local reduction of the headcount is in line with that sort of strategy. On a global basis, most of the 1500 jobs lost were shed from the company's California headquarters and many of those had been rehired by partners, Rushton said.

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