Silicon Graphics Inc has moved quickly to cut costs following completion of its takeover of MIPS Computer Systems Inc last week and has started dismantling many of MIPS’ operations. US reports suggest that 450 of the 685 jobs at MIPS are to go, although there are plans to redeploy at least 250 of those lost at other Silicon Graphics sites. All MIPS product manufacturing operations were halted at the end of June and the work is being transferred to Silicon Graphics’ own facilities. All MIPS buildings, except for one in Korea where Silicon Graphics doesn’t have an office, are scheduled to be closed by August. Silicon Graphics expects a loss for the quarter to June 30 after a hit of $90m to $100m from reorganisation.
