Dot Hill Systems Enacting Cutbacks to Save Cash
The company, which makes network-based data storage systems, did not disclose how many employees would be affected, but estimated its severance costs would be between $250,000 and $350,000. Dot Hill also disclosed plans to close a facility at an estimated cost of $1 million to $1.4 million in a filing submitted yesterday with the Securities and Exchange Commission.
Carlsbad, CA-based Dot Hill says it was originally planning to consolidate U.S. operations into its Longmont, CO, facility by 2009. Now, the company will defer that move until 2010 “in order to preserve cash” during the economic downturn. “We expect the restructuring measures we have taken to result in savings of $2.5 million to $3.5 million in 2009,” Dot Hill’s CFO, Hanif Jamal, said in a statement released today.
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