Hypertec has slashed its workforce by half and will shut down its $1 million computer assembly line after deciding to bail out of the PC business and refocus on its traditional product lines. Seventy-five of Hypertec's 150 employees have been made redundant as a result.
Hypertec managing director Geoff O'Reilly said the decision was made as a result of a sudden and dramatic shift in the economics of the PC market towards the end of last year, which saw margins halved in comparison to those available when Hypertec entered the PC business. A slowdown in government spending contributed to the problems.
O'Reilly said Hypertec will now focus on its traditional areas, such as memory making, but will honour all warranty and service agreements in full.