To address its recent financial woes, OCZ Technology announces a restructuring that will involve laying off 28 percent of its workforce and discontinuing 150 product variants. Before OCZ went public, the company already ditched its underperforming product segments like memory modules, coolers, desktop PCs and laptops, but now the company will go even further and streamline its product offerings for mainstream and high-end consumer products, as well as enterprise and OEM solutions. The press below mentions that about 80 percent of OCZ's value category products will be discontinued.
OCZ Technology Group, Inc. (NASDAQ: OCZ), a leading provider of high-performance solid-state drives (SSDs) for computing devices and systems, today issues this update to better inform its customers, investors, partners, and stakeholders about the status of its current business operation.
"We are undergoing a transition phase in the Company's evolution in which we are refocusing our efforts on products and strategies that will benefit both OCZ and our stakeholders over the long term," said Ralph Schmitt, CEO of OCZ Technology. "We have already taken aggressive steps to address some short-term tactical challenges and have begun streamlining the organization to help ensure that OCZ will be in the best position moving forward to address the fast growing consumer and enterprise SSD markets."
As part of the Company's transformation, it has taken initial steps to make its business more efficient and profitable by initiating the EOL procedures to discontinue approximately 150 product variations, including reducing the value category by approximately 80 percent. This streamlines OCZ's product offerings to address the mainstream and higher-end consumer products, as well as enterprise and OEM solutions.
The Company has also evaluated its inventory and is in the process of making the necessary adjustments, including monetizing some inventory to better align its product offerings and to free-up cash for the business. Excluding production personnel, the Company has reduced its global workforce by approximately 28 percent. Total personnel at the Taiwan production facility, including outside contractors, has been reduced by approximately 32 percent. This facility continues to increase overall efficiency and production levels. The Company will continue to take further actions aimed at reducing overall costs and improving operating results.
OCZ is working diligently and is making progress with regards to its on-going investigation meant to aid in the filing of its second fiscal quarter Form 10-Q. Closure on these items has taken longer than originally expected. Further details will be released when the Form 10-Q is filed.
Our business operations continue as usual. The company is delivering innovative solid state drive products to both the client and enterprise markets. OCZ continues to significantly invest in R&D to drive differentiated solutions with our unique controllers, firmware and enterprise software; while staying focused on profitably providing high quality SSD solutions and supporting our customers' needs.