ANAHEIM, CA, Oct. 8, 2004 -- DDi Corp. will lay off up to 175 employees at its Milpitas, CA, manufacturing facility and take cash charges of $1 million as it attempts to lower its costs. The losses will be partially offset by the expected addition of a small number of employees across DDi's other facilities, bringing the total staff reduction to approximately 7% of DDi's worldwide workforce.

Some orders will be moved to DDi facilities in Toronto and Virginia, taking advantage of those plants' lower production costs, said Bruce McMaster, DDi's CEO.

Following the restructuring, the company will continue to employ more than 1,800 people. As a result of the workforce reduction, DDi expects a cash restructuring charge of approximately $1 million to be incurred in the fourth quarter of 2004 and to realize annualized cost savings of between $6 and $7 million.