Silicon Graphics Board Meets on Job Cuts

The board of directors of Mountain View-based Silicon Graphics Inc. met to discuss a plan to lay off up to 5% of the computer maker’s work force in a shake-up that industry sources said could cost Chief Executive Edward McCracken his job. The board met to thrash out the cost-saving plan for Silicon Graphics, which has a proud heritage as an innovator of high-powered workstation computers used in automotive design and Hollywood movie special effects. The board was expected to continue deliberations today. The meeting must conclude before the board’s scheduled annual meeting at 2 p.m. A spokesman said the meeting would be followed by a news conference, but he declined to comment further. One source close to the company said morale, already hurt by restructurings after two years of disappointing performance, plunged to a new low after a company meeting set for Monday was abruptly postponed until after the board’s meeting. Silicon Graphics has faced increasing competition from ever more powerful personal computers. Shares rose 88 cents to close at $16.13 on the New York Stock Exchange.