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Flash array biz Tegile swings axe on staff
Workforce trimmed in UK, Netherlands in response to 'revenue at any cost'
Exclusive Today we learned hybrid and all-flash array supplier Tegile has sacked half its staff in the UK, and all its staff in the Netherlands. It had only just recently opened its Dutch office.
Rob Commins, Tegile’s veep for marketing, told El Reg: “First and foremost, we had an excellent fiscal 2016 that we just wrapped up on January 31.
"That being said, we have indeed made some changes. We have seen the market’s response to 'revenue at any cost' and are making changes to ensure we have a balanced growth model that accelerates our path to profitability.”
He confirmed that “some have [gone] in EMEA," adding: "For what it's worth, the total worldwide impact was well below 10 per cent, so not a grand mal disruption."
Tegile, based in Newark, California, has had a good run so far: it says that, since shipping its first storage array in 2012, it has deployed more than 1,800 systems within mid-sized and large enterprise environments, and has experienced year-over-year unit shipment growth of more than 350 per cent. It has also more than doubled its number of customers year-over-year.
Michael Morgan, coming from Panzura, was appointed as its CFO earlier this month, with Tegile saying he has a long history of transforming successful private companies into well-managed publicly traded organizations.
Hard times may be coming for the storage industry incumbents, and Tegile is determined to continue a disciplined path to growth, IPO and beyond, even where that means trimming costs and headcount. ®