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06/27/2001 Archived Entry: "VA Linux leaves the hardware field"

Linux Today - VA Linux leaves the hardware field
VA Linux Systems today outlined its new strategy focusing on application software, as well as significant restructuring steps designed to immediately improve cash flow and reduce operating losses.


As part of this strategy, VA Linux will exit the systems hardware business. Hardware orders will be accepted until July 10, 2001, with the goal of completing all deliveries by the end of the fiscal year, July 28, 2001. Staffing levels will be reduced by approximately 35 percent from the fiscal third quarter level of 436 employees. The majority of layoffs will occur during the current fiscal quarter, with the remainder over the next several months, as VA completes certain obligations to its customers, primarily in the area of hardware service and support.