SGI Asia to make headcount decision by end-Sept

SINGAPORE--SGI Asia Pacific will decide on whether to retrench its regional staff by the end of September, following net losses incurred by its parent company.

So for now, the fate of its 450-odd employees in Asia Pacific (excluding Japan) hangs in the balance.

"We are currently having our internal discussions to streamline our operations," SGI Asia Pacific vice president Jansen Ek said in an email interview.

"Plans should be finalized by the end of September and rolled out in October," he added.

In April, the high-end server maker announced that it planned to lay off 1,000 staff as part of its efforts to break even in the next few months. The company had posted a net loss of US$141 million for its third quarter ending March 2001.

Then, SGI said that it had no plans to retrench any of its staff in Asia.

However, on July 26, the company reported a heftier net loss of US$232 million for its fourth quarter.

SGI's headcount dilemma is not an isolated case. Computer maker Gateway Inc said that it would decide on the fate of its operations outside the US by end-September. These include its units in Asia, Europe, Africa, the Middle East and Latin America.

Yesterday, overnight, SGI shares slipped US$0.01 to close at US$0.70 on Nasdaq.