Silicon Graphics says restructuring plan approved

NEW YORK (Reuters) - As part of a restructuring plan meant to save US$80 million to US$100 million a year, computer maker Silicon Graphics on Friday said it was cutting jobs and reducing expenses.

It did not say how many jobs would be lost.

In a filing with the US Securities and Exchange Commission the company said it will take a restructuring charge of less than US$20 million mostly in its 2006 fiscal second quarter ending 30 December, which is also when it will begin to realize the savings.

The company's plan also includes initiatives to reduce procurement costs, consolidate operations and control spending in order to lower operating expenses and improve gross margins.

California-based Silicon Graphics said the restructuring will be mostly finished by the end of the fiscal third quarter ending 31 March.

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