Adaptec Inc, the troubled I/O interface chip controller and board manufacturer, has made a further move to reduce costs by cutting around 200 jobs through what it describes as strategic alliances. But the moves look rather more like dumping unsuccessful operations as rapidly as possible. It is linking up with Jaycor Networks Inc, a San Francisco fiber channel company for a joint manufacturing and sales relationship in return for an unspecified equity stake. Chaparral Technologies Inc, a private Longmont Colorado tape storage company, is also giving Adaptec an equity stake in return for certain external storage technologies. Only around 30% of the affected jobs will be saved by moving staff to the new operations. The only good news for stockholders is that Adaptec plans to spin off its satellite equipment for PC operation as a new company called BroadLogic Inc. Based in Milpitas, California, BroadLogic hope to capitalize on demand for high bandwidth communications from those with no fiber connections. Since April, Adaptec has reduced its workforce by approximately 25%. But the market was unimpressed by the latest bout of cost-cutting and the shares, which stood around the $50 market at the start of the year, eased back a further 3.9% to $10.56.
