updated 04:55 pm EST, Fri February 16, 2007
SanDisk hit by layoffs
Citing a 50 percent drop in NAND memory prices, caused by excess supply, SanDisk has announced a variety of severe cost-cutting measures. The harshest among these is the layoff of 10 percent of its employees, or roughly 250 people. The bulk of the terminations will happen in March, and should primarily target the company's "private label" USB business, which has not been as profitable as the SanDisk brand. All other employees will have their salaries frozen, except for the executive staff, who will take pay cuts ranging from 10 percent for the average vice president up to 20 percent for the CEO. Total savings are expected to be $30-35 million. Shoppers will benefit in the short term, as prices may drop by as much as 30 to 40 percent during the first quarter of 2007.