Cray Research Inc’s $40m restructuring programme (CI No 2,031) will affect two groups in the UK, resulting in the loss of approximately 50 jobs. About 25 of these have the option to relocate to headquarters in Eagan, Minnesota. Software development projects, currently undertaken in Bracknell, Berkshire, will be transferred to Minnesota. The Data Centre, which supports internal activities, such as training and project work, and provides an external bureau service to Cray’s UK customers, will be replaced by a network gateway to access systems at other Cray locations, primarily the ones back home in Eagan. Cut-backs worldwide will be made in non-core areas of activity, such as the development of software programs for monitoring real-time processing in chemical processing plants. Cray now is looking to share the financial burden of such projects via partnership agreements with customers, or with other investors; the alternative is to sell the lot off. Steps are being taken to focus Cray’s sales and marketing team better, and in future, products will be built according to improved sales forecasts. Inventories will be reduced by 30% in 1993. Nonetheless, Cray reported that the value of contracts signed in the third quarter was $180m compared with $120m in third quarter 1991, while its order backlog was about $351m, compared with $252m this time last year.
