SanDisk to cut jobs as prices fall

SanDisk will lay off 10 percent of its work force and cut other spending because price pressures have cut into profits.

Flash memory maker, SanDisk is cutting 10 per cent of its work force to remain profitable while being forced to make steep price cuts.

Last week, SanDisk said it would lay off about 250 employees beginning in early March but also cut salaries for top executives and freeze salaries for all other employees.

A 50 per cent reduction in NAND flash memory component prices in the last two months forced SanDisk to cut prices at the retail level and to original equipment manufacturers by between 30 per cent and 40 per cent, chairman and CEO of SanDisk, Eli Harari, said in a prepared statement.

"Although we believe there will be strong pickup in demand for our products in the second half of the year, we do not have visibility as to when the current aggressive pricing cycle will run its full course, and gross margins are likely to remain under significant pressure for several quarters," Harari said, who'll be taking a 20 per cent pay cut under the austerity plan.

The president of SanDisk and several executive vice-presidents will be hit with 15 per cent pay cuts and other vice-presidents will get 10 per cent cuts. There will also be a freeze on new hiring in many areas of the company.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Robert Mullins

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Cate Bacon

Aruba Instant On AP11D

The strength of the Aruba Instant On AP11D is that the design and feature set support the modern, flexible, and mobile way of working.

Dr Prabigya Shiwakoti

Aruba Instant On AP11D

Aruba backs the AP11D up with a two-year warranty and 24/7 phone support.

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?