Adaptec Inc, the disk controller and network interface company, is to cut its worldwide workforce by around 7%, or between 200 and 250 people, during its first fiscal quarter, ending June 30 1998. It now faces an $8m-12m restructuring charge during the quarter. The company’s fiscal fourth quarter ended on March 31. Milpitas, California-based Adaptec, which employs 3,500 people worldwide, blamed the decision on turmoil in the personal computer industry. The value of its shares plunged 40% following a third quarter profit warning it issued in January (CI No 3,323). Adaptec is also facing a shareholder lawsuit for insider trading, alleging that company officers and directors sold over 750,000 shares at prices exceeding $50 per share, obtaining proceeds of more than $31m. Shares were trading Friday at around $20.25. In February, Adaptec agreed to acquire semiconductor and storage systems manufacturer Fort Collins, Colorado-based Symbios Inc from its parent Hyundai Electronics America for $775m (CI No 3,354), which would add another 2,500 employees to its books worldwide. The acquisition will also result in further write-offs for in process technology development.
