Home OCZ trims product lines, workforce
News

OCZ trims product lines, workforce

Cyril Kowaliski
Disclosure
Disclosure
In our content, we occasionally include affiliate links. Should you click on these links, we may earn a commission, though this incurs no additional cost to you. Your use of this website signifies your acceptance of our terms and conditions as well as our privacy policy.

These are tough times for OCZ. In September, the company’s founder and CEO stepped down, allegedly over accusations of mismanagement. Less than one month later, OCZ warned of a "significant" quarterly loss, which it attributed to "customer incentive programs"—i.e. overly aggressive solid-state drive pricing.

Now, the company has issued a statement that outlines a reorganization plan. That plan involves deep cuts to both OCZ’s workforce and its product line, which is notorious for crowding similar products around the same price points. Here’s what the company says it’s doing:

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.

In short, we’re going to see a leaner OCZ with a more streamlined product lineup and fewer bargain-bin offerings. The company says it’s still "significantly" investing in research and development, though. Hopefully, that means the products remaining in OCZ’s lineup won’t suffer as a result of these changes.

Ralph Schmitt, OCZ’s new CEO, says the reorganization will benefit both stockholders and OCZ itself. Streamlining the company in this fashion will also "help ensure that OCZ will be in the best position moving forward to address the fast growing consumer and enterprise SSD markets," Schmitt claims.

Latest News

Apple Might Join Hands with Google or OpenAI for Their AI Tech
News

Apple Is Reportedly Planning to Join Hands with Google or OpenAI to License Their AI Tools

YouTube Launches New Tool To Help Label AI-generated Content
News

YouTube Launches a New Tool to Help Creators Label AI-Generated Content

YouTube released a tool that will make creators clearly label the parts of their content that are generated by AI. The initiative was first launched in November in an attempt...

Ripple Dumps 240 Million XRP Tokens Amid 17% Price Decline
Crypto News

Ripple Dumps 240 Million XRP Tokens Amid 17% Price Decline

Popular crypto payment platform Ripple has released 240 million XRP tokens in its latest escrow unlock for March. This comes at a time when XRP’s price has declined significantly. Data from...

Crypto Expert Draws A Links Between Shiba Inu And Ethereum
Crypto News

Crypto Expert Draws Link Between Shiba Inu And Ethereum

The Lucrative FTX Bankruptcy Trade and Ongoing Legal Battle
Crypto News

The Lucrative FTX Bankruptcy Trade and Ongoing Legal Battle

Bitcoin (BTC) Price Set to Enter “Danger Zone” – Time to Back-Off or Bag More Coins?
Crypto News

Bitcoin (BTC) Price Set to Enter “Danger Zone” – Time to Back-Off or Bag More Coins?

SNB to Kick Off Rate Cut Cycle Sooner Than Expected
News

SNB to Kick-Start Rate Cut Cycle Sooner Than Expected