Exabyte takes a bite out of staff to tighten its belt

Exabyte takes a bite out of staff to tighten its belt

Following the all too familiar trend of recent weeks, tape drive and storage manufacturer Exabyte announced last week it will be culling 250 staff and restructuring its senior management.

While no job cuts will be reported in Australia, Exabyte's regional sales manager, Richard Giddey, claims the move will help streamline operations. The manufacturer is gearing itself around tape library automation products rather than tape drive manufacturing, says Giddey.

As a result most of the cuts are expected to come from Exabyte's drive manufacturing facilities in the US.

Until now the storage sector has appeared to escape a general downturn in IT spending but, with the high cost of manufacturing in the US, Giddey would not be drawn on whether the company is preparing to move its production facilities to a cheaper region such as Asia.

Approximately 200 staff in the US will be given their don't-come-Monday's, along with a further 25 from the manufacturer's two production sites in Scotland and Germany, a company statement said. Exabyte will have a workforce of around 800 following these cuts.

The company hopes to save around $US20 million per annum with the cuts and has also announced a significant management restructuring with three key vice-presidents leaving the company.

Bill Marriner, Exabyte's chairman, president and CEO, has trimmed down his top execs in an attempt to flatten the organisational structure of the company and improve operational effectiveness.

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