Download the 2010 OC’s LARGEST COMPUTER PRODUCTS MAKERS LIST (pdf)
Lake Forest’s Western Digital Corp. helped stem a tide of job losses at Orange County’s biggest makers of computer products in the past year.
Western Digital, the No. 1 maker of computer products here, once again bucked the trend of consolidation as it continued to build upon its $65 million acquisition of Aliso Viejo’s SilconSystems Inc. last year, according to this week’s Business Journal list.
Western Digital added about 100 jobs, for an 8% increase to 1,300 local workers.
SiliconSystems, a ma-ker of drives made of flash memory chips with no moving parts, was folded into a new Western Digital unit with founder and former chief executive Michael Hajeck running it.
Western Digital continues to hire—it has more than 100 openings in Lake Forest listed on its website—for jobs in engineering, finance and administration, among others.
Even with the boost from Western Digital, the largest 25 computer products companies here cut local workers 8% in the past year to 6,459 people, according to the list.
The job slump marks two years of consecutive declines for the industry. A year earlier, local computer products makers shed some 500 jobs amid a freeze on technology spending by consumers and corporations.
This year, spending on technology is making a slow comeback. But many local companies have continued to cut costs.
Without Western Digital’s hiring, the list would have seen an 11% loss in computer products jobs for a total of 5,159 workers here.
Western Digital’s drives go into computers, external storage devices, corporate networks and consumer electronics.
It’s seen a big boost in sales as demand for laptop computers—and their smaller cousins, netbooks—grows faster than many expected.
The company reported March quarter sales of nearly $3 billion, up 66% from a year earlier.
But it was the anomaly here.
Seven companies on the list cuts jobs, three hired workers and two companies were flat. The total drop in employees might be more than reflected on the list as 13 companies were Business Journal estimates.
Cisco, Toshiba
With 450 workers, No. 4 Irvine’s Cisco Systems Inc. moved up one spot on the list and reported that its local workforce was roughly flat from a year ago.
It’s been seven years since Cisco scooped up Irvine-based Linksys LLC, a homegrown maker of routers and other networking gear for consumers, in a $500 million acquisition.
Linksys’ campus near the University of California, Irvine, since has become the hub for Cisco’s consumer efforts, which are aimed at spurring sales of the company’s routers and the hit Flip video camera.
Cisco nabbed the Flip last year when it paid $590 million for San Francisco’s Pure Digital Technologies Inc., the maker of the pocket-size camcorder that uses flash memory.
In Irvine, Cisco designs and markets routers and other devices that let people link household computers and share Internet access. The local operation also handles marketing and administration for the Flip, which has engineering in San Francisco.
No. 3 Toshiba America Information Systems Inc., a collection of Irvine-based business units that’s part of Japan’s Toshiba Corp., was the biggest decliner on the list.
Toshiba cut 141 jobs at its local operations for a total of 490 workers, a 22% slide.
A spokesperson for Toshiba declined to detail on the company’s job cuts.
Starting in July, Toshiba is set to combine two consumer electronics divisions here.
Toshiba America Information Systems Inc., which designs and markets laptop computers, is combining with Wayne, N.J.-based Toshiba America Consumer Products LLC, which makes TVs, Blu-ray players, TV/DVD combo products and portable DVD players.
The move “is designed to take full advantage of ongoing digital convergence in the U.S. market by combining the resources of each company,” the company said.
The consumer products unit is set to be folded into a division of Toshiba America Information Systems in Irvine as of July 1. It’s unclear what will happen to the New Jersey site.
A spokesperson for Toshiba said the move “will have a positive impact on our workforce and employment numbers in this area.”
Toshiba’s Irvine campus has 1,500 workers spread across four business units that make printers, fax machines, projectors, telecommunications gear, external portable storage drives and other office products.
Also a decliner, No. 16 Irvine’s Lantronix Inc., a maker of networking gear for industrial uses, recently wrapped up a big restructuring.
The company cut its local employee ranks to 90, down 29% from 126 a year earlier.
Lantronix took a variety of measures that’s set to save the company some $7 million per year, including eliminating a layer of management, reducing travel expenses, moving to a cheaper building, outsourcing its data center and “transitioning to a cost-conscious culture,” Chief Executive Jerry Chase said.
“In addition to the reduction in operating expenses, the newer, leaner organization has continued to tighten its focus on products and markets,” he said. “This renewed focus on a rigorous evaluation of our markets, products and customers has allowed us to bring to market a robust set of products. These new products are being very well received and the product pipeline is full.”
Lantronix makes small electronic devices that allow vending machines, thermostats, retail terminals, ATMs and other machines to be accessed via the Internet or other computer networks.
Restructuring
No. 8 D-Link Systems Inc., a unit of Taiwan’s D-Link Corp. and a maker of networking products for consumers and small businesses, did its restructuring from the top down and consolidated operations in North America and South America.
D-Link reported that it has 251 workers here, down 7% from a year earlier.
In February, the company promoted Nick Tidd to president of D-Link North America. He was brought on last year as vice president of marketing for North America and vice president of sales for Pan-America
operations.
Big changes began in May after the dearture of Steven Joe, former U.S. president and chief executive who spent more than 20 years at the company. Joe headed to Vizio Inc., the Irvine based seller of flat
TVs.
Download the 2010 OC’s LARGEST COMPUTER PRODUCTS MAKERS LIST (pdf)
