Wednesday, June 16, 2010
Dot Hill Cuts Facilities, Staff, Salaries
Longmont, Colorado-based Dot Hill Systems, a developer of data storage products, reported late Tuesday evening that it is accelerating the closure of its operations in Carlsbad, California, laying off 10 percent of its employees, and is cutting salaries across the board. The firm said that the restructuring plan for the firm is intended to help the firm achieve non-GAAP EBITDA break-even by Q4 of this year. Dot Hill said it will accelerate closure of its Carlsbad, California facility, resulting in a 10% reduction in its global workforce and charges of between $300,000 to $500,000 in severance costs, as well as $200,000 to $350,000 in facility reduction costs. The firm also said it will cut the annual base salary of its vice president and executive management team by 10 percent, and a five percent cut in annual base salaries of certain employees below the VP level.