OCZ Technology Group on Wednesday said that it had begun the process of restructuring, under which it shrinks its product lines and reduces its workforce. The company calls its actions initial steps to make its business more efficient and profitable.
"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. 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," said Ralph Schmitt, CEO of OCZ Technology.
OCZ has initiated end-of-life (EOL) procedures to discontinue approximately 150 product variations, including reducing the value category by approximately 80%, which is necessary to streamline 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, OCZ has reduced its global workforce by approximately 28%. Total personnel at the Taiwan production facility, including outside contractors, has been reduced by approximately 32%. The company promised to continue to take further actions aimed at reducing overall costs and improving operating results.
OCZ’s business operations continue as usual. The company is delivering solid state drive products to both the client and enterprise markets. OCZ continues to significantly invest in R&D to drive differentiated solutions with its unique controllers, firmware and enterprise software; while staying focused on profitably providing high quality SSD solutions and supporting its customers' needs.
OCZ is also 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.