bit-tech.net

OCZ drops 150 product lines, sacks staff

OCZ drops 150 product lines, sacks staff

OCZ's new CEO has cut nearly a third of the workforce and is ending 150 product lines as the company struggles to stay afloat.

OCZ's financial worries continue to mount, with the company announcing that it is to reduce its product offerings and shave jobs in order to keep its head above water.

The first of the company's activities to improve its bottom line involves issuing end-of-line (EOL) notices for around 150 of its multifarious product lines. It's a serious undertaking, and will see the company's budget-friendly product offerings - where margins are the tightest - slashed by around 80 per cent.

As a result, the company is to focus on the more lucrative enterprise and high-grade consumer products. In the short term, that could mean bargains for consumers: OCZ's existing inventory is to be, in the company's own words, monetised - which means end-of-line products are going to be sold off dirt-cheap. Once existing inventory is depleted, however, it means one less company competing in the budget end of the market - never a good thing for those who like to see low prices and innovation.

The job losses account for around 28 per cent of the company's global workforce, a serious loss, with nearly a third of all employees at OCZ's Taiwanese production facility facing the chop. Additional measures to reduce expenditure and improve revenue are also being discussed, although OCZ has yet to share details with investors or press.

'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,' claimed Ralph Schmitt, OCZ's newly-appointed chief executive officer, in a statement to press. '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.'

7 Comments

Discuss in the forums Reply
r3loaded 1st November 2012, 11:36 Quote
This isn't actually anything particularly new, but a continuation of their existing business plan - get out of low-margin, commodity products like RAM and jump into lucrative high-margin products such as SSDs where branding has a more significant.

Corsair's been following the same pattern too, having diversified into...well pretty much everything!
Gareth Halfacree 1st November 2012, 11:44 Quote
Quote:
Originally Posted by r3loaded
This isn't actually anything particularly new, but a continuation of their existing business plan - get out of low-margin, commodity products like RAM and jump into lucrative high-margin products such as SSDs where branding has a more significant.
I'd say that sacking damn-near a third of the workforce is a pretty new strategy!
Farfalho 1st November 2012, 16:48 Quote
Here in Portugal it has become a trend to fire all the workforce by shutting down and declare bankrupcy. Some people want the easy way, bow down instead of struggling and push forward.
What I would like to know in the detail are the products categories and, if possible, which ones.
MjFrosty 1st November 2012, 18:39 Quote
I'd say a large portion of their losses are down to returns. I've sent back 10 Vertex drives in the last 5 months.
Makaveli 2nd November 2012, 02:16 Quote
Quote:
Originally Posted by MjFrosty
I'd say a large portion of their losses are down to returns. I've sent back 10 Vertex drives in the last 5 months.

So if their products are such crap why do you keep buying them?
fluxtatic 2nd November 2012, 07:26 Quote
150 lines Good christ, how many pies do these guys have their fingers in?

Always a shame when a company gets itself in trouble - not for the company, for the whole lot of people that are about to be out of a job. I hope OCZ does right by them.

And, yeah, frosty, what the hell? If it's a company I'm rabidly loyal to (Asus, G.Skill) they'd get a pass a time or two. Otherwise, you get about one shot with me (AMD video cards - never again.)
Elton 2nd November 2012, 08:46 Quote
Quote:
Originally Posted by Makaveli
So if their products are such crap why do you keep buying them?

Prices. I daresay that OCZ drives just have spotty reliability. It's a shame really as they're priced beyond reasonably well and they do perform decently. It's just that they're horrifically unreliable.
Log in

You are not logged in, please login with your forum account below. If you don't already have an account please register to start contributing.



Discuss in the forums