Dot Hill Systems (NASDAQ: [[ticker:HILL]]) said today it plans to shut down about 40 percent of its Carlsbad facility as part of a restructuring plan intended to save as much as $1.75 million.
The company, which makes network-based data storage systems, did not disclose how many employees would be affected, but estimated its severance costs would be between $250,000 and $350,000. Dot Hill also disclosed plans to close a facility at an estimated cost of $1 million to $1.4 million in a filing submitted yesterday with the Securities and Exchange Commission.
Carlsbad, CA-based Dot Hill says it was originally planning to consolidate U.S. operations into its Longmont, CO, facility by 2009. Now, the company will defer that move until 2010 “in order to preserve cash” during the economic downturn. “We expect the restructuring measures we have taken to result in savings of $2.5 million to $3.5 million in 2009,” Dot Hill’s CFO, Hanif Jamal, said in a statement released today.
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Author: Bruce V. Bigelow
In Memoriam: Our dear friend Bruce V. Bigelow passed away on June 29, 2018. He was the editor of Xconomy San Diego from 2008 to 2018. Read more about his life and work here.
Bruce Bigelow joined Xconomy from the business desk of the San Diego Union-Tribune. He was a member of the team of reporters who were awarded the 2006 Pulitzer Prize in National Reporting for uncovering bribes paid to San Diego Republican Rep. Randy “Duke” Cunningham in exchange for special legislation earmarks. He also shared a 2006 award for enterprise reporting from the Society of Business Editors and Writers for “In Harm’s Way,” an article about the extraordinary casualty rate among employees working in Iraq for San Diego’s Titan Corp. He has written extensively about the 2002 corporate accounting scandal at software goliath Peregrine Systems. He also was a Gerald Loeb Award finalist and National Headline Award winner for “The Toymaker,” a 14-part chronicle of a San Diego start-up company. He takes special satisfaction, though, that the series was included in the library for nonfiction narrative journalism at the Nieman Foundation for Journalism at Harvard University.
Bigelow graduated from U.C. Berkeley in 1977 with a degree in English Literature and from the Columbia University Graduate School of Journalism in 1979. Before joining the Union-Tribune in 1990, he worked for the Associated Press in Los Angeles and The Kansas City Times.
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