Local Quantum staff safe from cuts

Local Quantum staff safe from cuts

The Australian office of storage vendor Quantum will be spared a sweeping reorganisation that will see the company cut more than one-third of its global workforce.

Quantum last week announced that it will consolidate parts of its business in an effort to offset falling revenues caused by declining hardware sales.

The company will cut 1,100 positions as it embarks on a restructuring effort expected to continue over the next two quarters, the company said. The maker of tape drives and storage systems currently employs close to 3,000 people and has been hit hard by a slowdown in hardware spending.

The first phase of Quantum's reorganisation will affect the DLTtape Group and Storage Solutions Group. The company plans to outsource much of the manufacturing from those divisions to Jabil Circuit. Quantum also plans to outsource manufacturing of its P-Series tape libraries.

The second phase of the reorganisation includes cutting back on development teams and site locations to help align the company's operations with lower revenue levels.

Quantum Australia's managing director, Simon Harvey, told ARN that the announcement had little impact on Australia or the Asia-Pacific region. "The company is realigning the business in terms of cost infrastructure, most of this being in terms of manufacturing," he said. "For the Storage Solutions Group, for Australia and the region in general, it is business as usual."

Quantum hopes the reorganisation will allow it to cut its pro forma operating expenses by close to 20 per cent by the end of its fiscal year in March 2003, excluding amortisation of goodwill and restructuring expenses.

Quantum last month recruited former Microsoft executive Rick Belluzzo to the position of CEO to help turn the company around.

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