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SanDisk Announces Layoffs, Other Cuts

SanDisk, a maker of flash memory products, said Friday it is cutting about 250 jobs, or 10% of its global work force, and reducing all executive salaries in an effort to curb costs.

The company is also freezing all other employee wages and is halting new hiring for "most areas."

SanDisk said the job cuts reflect the company's decision to de-emphasize its USB private-label business in favor of the more profitable SanDisk branded business. The job cuts will mainly take place in March.

The company also is cutting the base pay of its chief executive by 20%, and cutting the salaries of other executives.

SanDisk expects to save between $30 million and $35 million annually, including $20 million to $25 million from the layoffs.

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The job cuts also will reduce stock options costs by about $10 million a year, SanDisk said.

In aftermarket activity, SanDisk shares lost another $1.28, or 3.3%, to $38.85. The shares finished market hours Friday at $40. 13. SanDisk stock has ranged from $37.34 to $66.20 over the past year.