Violin Memory Reduces Workforce by 103 or 21%

Violin Memory, Inc. announced a restructuring plan focused on accelerating growth and increasing operating leverage.

The company’s plan includes a global reorganization of its sales, marketing and engineering functions designed to sharpen its focus on core segments of the flash-based storage market, drive greater efficiency and grow revenues by strengthening engagement of indirect channels.

In connection with the restructuring, the company has implemented a workforce reduction that brings its current employment level to approximately 380 positions, which compares to 483 positions as of October 31, 2013. The company has notified those affected by the reduction and has taken steps to ensure a smooth transition.

The company also announced that its board of directors has authorized a review of strategic alternatives for its PCIe flash memory card business in order to focus on markets where Violin has proven technology leadership and significant growth opportunities. The company anticipates it will complete the review and take any related actions by the end of its first fiscal quarter, resulting in an anticipated reduction of operating expenses of approximately $10 million on an annual basis.

“The market opportunity for flash-based storage infrastructure is accelerating, and the restructuring actions we are announcing today should further strengthen our ability to capitalize on this growing opportunity,” said Kevin DeNuccio, Violin Memory president and CEO. “We remain focused on improving the overall cost efficiency of our business and building a strong future for our stakeholders.”