Seattle supercomputer company Cray is laying off 190 employees — about 15 percent of its staff — as it restructures.
Seattle supercomputer company Cray is laying off 190 employees — about 15 percent of its staff — as it restructures its business, the company said in a regulatory filing Wednesday.
The layoffs will affect all its major locations, Cray said in the filing. It is unclear how many layoffs will be in the Seattle area.
Cray develops supercomputers that provide massive computing power to public agencies, big companies and — recently — the Alan Turing Institute at the University of Edinburgh.
The company has faced tough financial times in recent quarters, posting revenue of $59 million for the first quarter of 2017, a sharp drop from $105.5 million in the same quarter last year. Last summer, Cray’s stock dropped 30 percentafter its second-quarter earnings report as CEO Peter Ungaro said the supercomputer market was slowing.
Cray said in a statement Wednesday morning that the restructuring comes “after thorough analysis of the current market conditions and our existing cost structures.” The company did not give details on which teams or locations the cuts would affect.
At least one of the eliminated positions may be at the executive level, as the filing said certain employees will receive additional severance as part of the “company’s executive severance policy.”
The cuts will cost Cray about $10 million, due largely to severance payments. The company expects the restructuring will save it $25 million each year, mostly in operating costs.
Some of the cuts will be offset, Cray said, by hiring that the company plans to do in “strategic areas” of the business.
In January 2016, Cray said it had 1,270 employees worldwide, including about 150 in Washington state. Earlier this year it reported a total work force of 1,312 as of December.