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STEC discloses elimination of 65 full-time employee positions

STEC disclosed in a regulatory filing that during the fourth quarter of 2012 and through January 14 the company reduced its workforce. The reduction in workforce has impacted 65 full-time employees worldwide and was implemented to improve the financial performance of the company by reducing future operating costs. Including the previously disclosed voluntary salary reduction by CEO Mark Moshayedi and founder Manouch Moshayedi, the combined effect of these cost reductions is expected to be approximately $8.8M per year, or $2.2M per quarter. The full quarterly impact of the cost reductions is expected to be first realized in the second quarter of 2013, STEC said. As a result of the reduction in workforce, the company recorded expenses of approximately $0.4M in Q4 and expects to incur additional costs of $0.4M during the first quarter of 2013 related to employee severance payments.