SGI hits the skids

Silicon Graphics announced on Wednesday the resignation of Chairman and CEO Edward McCracken and the potential for up to 1,000 layoffs. Additionally, SGI will take a restructuring charge of $50 million for thequarter.

"I've decided that now is the right time for the company and for me personally to make a change," said McCracken. "When I joined Silicon Graphics in 1984, it was a 100-person graphics company with great people and ambitious objectives. Today we are the world's leader not only in graphics but in the entire high-performance computing market. I've been proud to be associated with the talented and innovative people of SiliconGraphics, and I'm looking forward to continuing in a strategic role with the company. I'm very confident that Silicon Graphics will continue to growunder new leadership, and I'm committed to making the transition successful."

SGI hits a sales peak in 1995 but has seen their marketshare fall dramatically recently