Responding to pressures from competitors like AST Research in Irvine, Emulex Corp. said Thursday that it has merged its Persyst brand retail computer products division into its two primary operating units, which serve manufacturers.
The Costa Mesa company said it will continue to produce and service the Persyst retail product line.
But Emulex acknowledged that competition at the retail level has forced it to focus its production and sales more on those who make the final products and on corporate markets, particularly International Business Machines Corp. and makers of IBM-compatible products.
"We can no longer expend the same level of resources to sell . . . products into the retail marketplace and realize an acceptable return for our investment," Steve Frankel, Emulex president, said in prepared remarks.
The reorganization will mean that some employees--"significantly less than 5%" of the 845-person work force--will be laid off, said Michael J. Lewis, the company's chief financial officer. He would not reveal the number of employees who will lose their jobs.