Milpitas-Based SanDisk to Cut 250 Jobs in Cost-Cutting Effort

Milpitas, Calif. -- Needing to cut costs to combat falling prices for its components, Milpitas-based SanDisk, a maker of flash storage card products, said on Friday that it will cut 250 jobs -- or about 10% of its workforce -- and reduce the salaries of its executives by as much as 20%. SanDisk said that the job cuts will primarily occur in early March, and will reflect its recent decision to de-emphasize the company's USB private label business in favor of its more profitable SanDisk branded business. Other cost-cutting measurers will include salary freezes for all employees and a hiring freeze in most areas of the company. SanDisk said that it expects to save $30-$35 million a year as a result of the measures. The company said that it has been hurt by component pricing that has deteriorated by as much as 50%, as well as seasonally weak demand.
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