Violin to cut 100 jobs as it retunes business

Flash memory vendor to explore options for its PCIe flash memory business as part of global restructure

Troubled storage vendor Violin Memory has announced a restructure that will result in its headcount being cut by more than a fifth.

Having recently ousted its chief executive in the wake of its disappointing IPO, Violin has announced it plans to cut headcount from 483 (as of 31 October) to 380 as it refocuses on core segments of the flash-based storage market.

A global reorganisation of its sales, marketing and engineering functions is planned, while the firm also intends to grow revenue by "strengthening engagement of indirect channels".

The restructure means Violin may sell its PCIe flash memory card business as it reviews "strategic alternatives" for the non-core unit.

Kevin DeNuccio, who took Violin's reins this month following the ouster of previous chief Donald Basile in December, said his firm "remains focused on improving the overall cost efficiency of our business and building a strong future for our stakeholders".

He added: "The market opportunity for flash-based storage infrastructure is accelerating, and the restructuring actions we are announcing today should further strengthen our ability to capitalise on this growing opportunity."

In its most recent quarter, its Q3 ending 31 October, Violin saw GAAP net losses widen from $25.4m (£15.2m) to $34.1m year on year.

When the firm floated on the New York Stock Exchange in September its 18 million shares were priced at $9 but quickly fell to as low as under $3 in December. They are currently hovering around the $4 mark.

Violin said it had notified staff affected by the reduction, adding that it will provide more information about the strategic restructuring plan during its full-year results conference call on 6 March.