Auspex Systems Announces Cost-Cutting Measures

Thursday Nov 15th 2001 by Network Storage Forum Staff

Company said steps taken to promote long-term success of its data storage business

Auspex Systems, Inc. , a provider of enterprise storage solutions, today announced that it pans to enact a variety of cost-cutting measures designed to enhance the long-term health of the company. These include laying off approximately 170 employees and several structural changes that will streamline processes and eliminate excess capacity.

According to the company, the resizing includes departmental staffing adjustments spurred by several shifts in company procedures, including a transition to outsourced manufacturing, increased reliance on Auspex's worldwide support center to provide customer support functions, and a recent conversion from proprietary hardware to standard components that do not require dedicated hardware engineers.

As a result of this action, the company estimates that operating expenses will be reduced by approximately $4.5 million per quarter. Auspex estimates that severance costs and other related expenses are expected to total $3.5 million.

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