3dfx Streamlining

As part an aggressive program to return to profitability, 3dfx Interactive has announced that approval of a plan to spin off its Specialized Technologies Group and an overall workforce reduction of 20 percent. The company will spin of the STG group, which focuses on commercial multi-channel video and display, will be spun off within the next 90 day and will account for some the 20 percent workforce reduction. Additional reductions will come from layoffs and attrition in redundant areas. Most affected will be 3dfx's administration, operations, sales, and software support departments. "These are the first steps towards our number one goal of returning to profitability as a company,'' said 3dfx CEO Alex Leupp, "Our revised focus on core competencies and productivity, coupled with a reduction in expenses and operational costs positively positions us for our new fiscal year." One notable departure is the retirement of Bill Ogle from his position as executive vice president and vice chairman of 3dfx's board of directors. Ogle joined 3dfx as part of the company's 1999 merger with STB Systems, which Ogle co-founded in 1981.