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Creative Halves Workforce But Builds Zii Hype

Gordon Kelly


Creative Halves Workforce But Builds Zii Hype

It's hard to know what to make of Creative's prospects for 2009, but mixed messages like these don't help much...

In a prime example of 'There's good news and bad news' we'll get the latter out the way first with Creative admitting that it will have to cut 2,700 jobs - more than half its 5,000 strong global workforce. The news comes on the back of poor financial results which saw the company post a net loss of almost $20m in its last quarter and turn in its lowest revenue figures in five years ($736.8m).

"The markets that Creative targets are highly competitive," said Creative in a statement. "Many of Creative's current and potential competitors have substantially greater financial, manufacturing, marketing, distribution and other resources."

Doesn't sound too positive, does it?

Yet countering this Creative continues to massively hype its mysterious Zii Processor. Following up its 'Everything You Know Is About To Change' slogan we have received an invite which boasts: "You will be invited to join a new movement that will experience revolutionary breakthroughs... we have created a stem cell-like silicon that is able to grow and multiply into different solutions and ecosystems. With an investment that spans over 10 years, over a billion dollars and over 10,000 man-years, the world is poised to experience a breakthrough that will better lives beyond our imagination."

Is there any way the Zii can possibly live up to this hype? Yep, I'm sceptical too but let's hope Creative can truly knock our socks off this week - at the very least for the sake of its remaining 2,300 employees...


Cuts via Hurriyet DailyNews


January 5, 2009, 10:58 am

This kind of hype really turns me off. I like Creative because they've made good products but this kind of ad line really just makes me want to not like what they are selling defensively.


January 5, 2009, 9:46 pm

I find it difficult to believe how revolutionary this can be considering that in the tech business revolutionary = desirable, and it doesn't seem like they had enough confidence in their product to keep their staff, I'm going to be pessimistic and say Creative is over hyping Zii for 2 reasons:

1: They are cutting more then half their workforce

2: They're announcing it at CES when something so revolutionary would probably garner it's own press release/event

3: THey called it the Zii....


January 6, 2009, 4:14 am

No so "Creative" if they have to fire half of their workforce...is better if they fired the CEOs and keep that the large amounts of money in the invest department... cause they havent thinking right about how to defend against competition...


January 6, 2009, 11:42 am

I do not think reducing workforce suggests that creative cannot live up to the expectation of its hypes...if the financial crisis has anything to do with this, I do think that many companes has to restructure its operation to have any real future. Staying lean and focus in its product development is the key for many technology firms. Quick on creative's product launches over the last couple of years, it is quite obvious that they are streamlining. This may be good news.

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