The pending restructuring at flash memory chipmaker SanDisk Corporation (Nasdaq:SNDK) will reportedly involve extensive layoffs. The company will reportedly lay off 30-40 of its 700 employees in Israel. The company has 3,000 employees worldwide, and layoffs are expected everywhere.
The layoffs are part of the company's decision to change its global cost structure and consolidate activities as a cost-cutting measure. The sources added that most of the layoffs will be in administration and marketing. The company declined to comment on the report.
These will not be the first layoffs by SanDisk in Israel. Just over a year ago, following the acquisition of msystems, the company laid off 100 employees, which it attributed to streamlining following the acquisition.
A few weeks ago, SanDisk VP Israel operations Shimon Stolero was appointed development manager. He heads 170 employees in Israel, 100 of whom are based at the company's development center at Tefen in the Galilee. Ironically, Tefen is seeking dozens of new workers, and views the layoffs in the high-tech market as an opportunity to obtain them, which may imply something about how SanDisk wants to operate in Israel.
Published by Globes [online], Israel business news - www.globes-online.com - on May 1, 2008
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