Seattle supercomputer maker Cray plans to cut 190 jobs, representing about 14 percent of its global workforce, as part of a restructuring plan meant to cut costs.
In a filing with the U.S. Securities and Exchange Commission Wednesday, the company said the layoffs will “affect all organizations and major geographies of the Company.” A “vast majority” of the cuts are set to take effect by the end of the week, the company said in the filing.
Cray said it expects to save $25 million per year as a result of the job cuts. It will take a $10 million restructuring charge, mostly related to severance payments and employment taxes.
Cray says on its website it has more than 1,300 employees globally, with its headquarters in Seattle and engineering and manufacturing facilities in California, Minnesota, Texas and Wisconsin. It has sales and service offices around the world.
Seymour Cray is a legend in high-performance computing, and while the company he founded has gone through a number of iterations as servers evolved over the decades, it’s still putting out some of the most powerful machines on the planet. The market for those machines is shrinking, however, as cloud services become more and more popular and powerful: Cray’s revenue and net income declined sharply in 2016 compared to the previous year.
Cray moved to Seattle in March 2000 when it was acquired by Tera Computer Company, which immediately re-named itself after the iconic brand. Recently Cray has been working to reinvent itself for the cloud era with a new product that promises “supercomputing as a service.”